5 Types of Business Insurance Every TN Small Business Should Consider

Running a business in East Tennessee means wearing a lot of hats—owner, manager, sometimes even delivery driver. One role you can’t afford to overlook is risk manager. Whether you operate a retail shop in Morristown or run a small contracting business in Jefferson City, the right business insurance can make the difference between a minor hiccup and a major setback.

 

If you're not sure where to start, here are five essential commercial insurance policies that small businesses in Tennessee should consider.

 

1. General Liability Insurance

This is often the first policy a business needs. General liability insurance covers injuries to customers or damage to their property that happens as a result of your business activities. If someone slips in your store or you accidentally damage a client’s property on a job, this coverage steps in. It’s foundational for nearly all industries, from storefronts to home-based businesses.

 

2. Commercial Property Insurance

Whether you own your building or lease a storefront on Main Street, commercial property insurance helps cover the cost of repairing or replacing your space and contents after a fire, theft, or storm. It includes things like equipment, signage, furniture, and inventory.

 

3. Business Owners Policy (BOP)

Many East Tennessee small businesses bundle general liability and commercial property coverage into a single plan called a Business Owners Policy. A BOP offers essential protections at a lower cost than purchasing each policy separately, and it often includes extras like business interruption coverage.

 

4. Workers’ Compensation Insurance

If your business has five or more employees (or just one if you're in construction), Tennessee law requires you to carry workers’ comp insurance. This covers medical costs and lost wages if an employee gets hurt on the job. Even if you’re under the legal threshold, it can still be smart to carry this protection, especially if you run a physically active business.

 

5. Commercial Auto Insurance

Personal auto policies don’t usually cover work-related driving. If you have a company vehicle—or use your own vehicle for business—commercial auto insurance is a must. It helps cover liability, medical payments, and physical damage for vehicles used in your operations.

 

Bonus Coverage to Think About

Depending on your industry and risk profile, you may also want to explore:

- Commercial umbrella policies

- Professional liability (for service providers)

- Cyber liability

- Bonds and surety services

 

We can walk you through these if they apply.

 

Why It Matters for Morristown & Beyond

Local businesses are the backbone of our community. From family-run restaurants in Sevierville to HVAC contractors in Dandridge, each business has its own set of risks—and its own insurance needs. As a commercial insurance agent based in Morristown, we work with small business owners across the region to find the right fit for their coverage and their budget.

 

Let’s Build the Right Protection Plan

Every small business deserves the confidence of knowing they’re covered. If you're just starting out or unsure whether your current commercial insurance is still a good fit, let’s talk. We’ll help you understand your options, compare quotes, and build a plan that works for your Tennessee business.

 

Reach out today for a free consultation. No pressure—just real advice from your local insurance team.