Nationwide is the top contender for Tennessee’s best general liability insurance in MoneyGeek’s analysis, with a score of 93 out of 100. However, NEXT, The Hartford, Thimble and Hiscox are also great options for the best general liability insurance.
Best General Liability Insurance in Tennessee
Updated: June 20, 2025
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Key Takeaways
Overall, the best general liability insurance company in Tennessee is Nationwide, which has a great balance of affordable rates for LLCs and good customer service.
The cheapest general liability insurance for sole proprietors in Tennessee is offered by NEXT at $27 per month. For LLCs, NEXT is the most affordable option at $27 a month.
General liability insurance costs in Tennessee depend on your industry, and we found they can range from $29 to $3,611 per month on average.
Best Cheap General Liability Insurance in Tennessee
| Nationwide | 93 | $35 | $41 |
| NEXT | 90 | $27 | $27 |
| The Hartford | 88 | $34 | $56 |
| Thimble | 84 | $32 | $66 |
| Hiscox | 83 | $32 | $76 |
*Rates were based on a $1,000,000 per occurrence and $2,000,000 aggregate limit for a software development company.
Nationwide: Best Overall
pros
Low rates for LLC businesses
Large coverage selection
Low customer claims frequency
cons
Higher rates for sole proprietors
COMPANY HIGHLIGHTS
We recommend Nationwide as Tennessee's leading general liability insurer due to its blend of competitive costs and reliable service delivery. The provider tied for first for the lowest claims ratio from the NAIC, and offers rates averaging $35 for sole proprietors and $41 for LLCs.
NEXT: Cheapest Overall
pros
Easy fast buying process
Very cheap rates overall, regardless of business size
Business-insurance-only focus
cons
Higher customer complaint frequency
COMPANY HIGHLIGHTS
We selected NEXT as Tennessee's most affordable general liability insurance option. Sole proprietors and LLCs alike can secure coverage for just $27 monthly. Despite having a higher customer complaint ratio compared to other insurers we analyzed in the state, NEXT provides a streamlined purchasing experience with same-day proof of insurance available.
How Much Is General Liability Insurance in Tennessee?
An average general liability insurance policy in Tennessee typically costs around $29 per month for sole proprietors and $52 per month for LLCs. However, this only represents software development companies and the costs can vary widely by industry.
| Cleaning | $1,513 | $78 |
| General Contractor | $3,611 | $254 |
| Software Development | $52 | $29 |
*Rates are based on a $1,000,000 per occurrence and $2,000,000 aggregate coverage policy for general liability.
Factors That Impact General Liability Insurance Costs in Tennessee
General liability insurance costs can fluctuate based on a number of different factors in Tennessee. In the list below, you can see these factors and their impacts on your coverage costs:
Policy limits
Coverage limits play a crucial role in determining insurance premiums. Opting for higher limits generally leads to increased costs, whereas selecting lower limits can result in more affordable premiums.
Number of employees and payroll costs
Businesses with a large workforce and high payroll expenses often see a rise in general liability insurance costs. This trend is evident in our analysis of LLCs and sole proprietorships.
Business location
Where your business is located significantly affects your insurance costs. Keep in mind that state-level average rates can differ from city to city, so it's important to consider these variations when assessing your coverage needs.
Claims history
A record of multiple claims can make a business appear riskier to insurers, which usually leads to higher premiums.
Industry
Tennessee's specific industries may influence costs. Industries with higher risks, like construction, typically encounter increased general liability insurance expenses.
Tennessee General Liability Insurance: Buyer's Guide
To simplify your understanding of general liability insurance, we've created a short guide detailing how to get the best coverage, defining what it covers, listing Tennessee requirements, and explaining how much coverage you should consider getting.
How to Find the Best General Liability Insurance Company
To help ensure that you get the best small business insurance regardless of your industry, we've created a step-by-step guide to simplify your coverage search.
- 1
Define your coverage needs
Determine your liability risk by considering your industry, services, customer types, business size and market impact. Assess the frequency and costs of common claims in your industry to evaluate coverage options better.
- 2
Research average costs for your business
Research average costs for your type of business to understand how good of a deal you're getting from insurance companies. Knowing average expenses will give you insight into if a company is going to save you money.
- 3
Consult similar businesses
Your business community is your greatest resource, which can give you recommendations that are better for your specific needs. They may also provide ways to mitigate risks associated with general liability insurance. This may mean you don’t need extra coverage.
- 4
Compare multiple options through different means
Comparing multiple companies apples to apples ensures that you can judge which option is best for your business. Choosing multiple means of comparison, like online comparison sites and brokers, will give you a better view of pricing and provide more opportunities to get advice.
What Does General Liability Insurance Cover and How Does It Work?
General liability insurance coverage consists of two parts: per occurrence and aggregate limits. Per occurrence refers to the maximum a single claim can go up to, while the aggregate limit is the total coverage you can get per year. In terms of covered items, this type of policy includes the following:
Bodily injuries or property damage on business property
Legal fees for bodily injury or property damage that your company may be responsible for
Damages to leased or rented business property
Bodily injury or property damage caused by your product or service
Libel, slander, or reputational harm legal defense
Legal fees for copyright infringement accusations
Is General Liability Insurance Required in Tennessee?
General liability insurance isn't expressly required by state law and instead varies by your industry. If you want to apply for a professional license, sign a contract with a larger company, or sign an office lease, some form of general liability insurance may be required. While not an exhaustive list, the following industries tend to fall into these categories:
- Medical
- Accounting
- Real estate
- Insurance
- Contracting
- Engineering
- Marketing
- Law
- Consulting
- Media/Communications
How Much General Liability Insurance Do I Need?
Most small businesses need a standard policy with $1 million of protection per occurrence and a $2 million annual limit. This generally protects for over a year. However, your industry's risks and business size might require higher coverage limits.
WHO MAY NEED MORE COVERAGE
Certain businesses, like those in health care, building, or selling goods, face bigger risks. These businesses often see the costliest insurance claims. When your business is part of these groups, consider getting more insurance to cover you. This is also true for businesses with more workers or your products and services reach more people.
Best General Liability Insurance in Tennessee: Bottom Line
Overall the best general liability insurance companies in Tennessee are Nationwide, NEXT, and The Hartford. However, we recommend comparing around yourself and getting plenty of quotes to ensure you get the best deal possible.
General Liability Insurance in Tennessee: FAQ
Below, we address frequently asked questions regarding general liability insurance in Tennessee.
Which company has the best general liability insurance in Tennessee?
MoneyGeek's leading choice for general liability insurance in Tennessee is Nationwide, which earned an overall score of 93 out of 100. However, the ideal insurance for you depends on various details, including your business size, number of employees, and specific coverage requirements.
Which company has the cheapest general liability insurance in Tennessee?
NEXT is the most affordable insurer for both business types in Tennessee, with annual rates of $324 for sole proprietors and $324 for LLCs. Nationwide offers competitive rates at $420 annually for sole proprietors and $492 annually for LLCs.
Does Tennessee require businesses to have general liability insurance?
In Tennessee, while not obligatory, it's prudent for businesses to secure general liability insurance to shield themselves against financial risks related to third-party claims.
How We Chose the Best General Liability Insurance Providers in Tennessee
We broke down our scores into these categories and weights:
- LLC cost (55% of score)
- Sole proprietor cost (5% of score)
- Customer satisfaction (25% of score)
- Financial strength (10% of score)
- Quote process time (5% of score)
For all business insurance companies, we assumed software development industry LLCs with 20 employees. We based customer satisfaction and financial strength scores on NAIC and AM Best ratings. Quote process scores came from our MoneyGeek experts' personal experiences.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.