Insurance is essential for contractors operating in Tennessee. This guide provides detailed information about insurance requirements, costs, and coverage options based on our analysis of actual quotes from leading carriers.
Build a secure future by reading about contractor liability policy insurance.
General Liability Insurance for Tennessee Contractors
General liability insurance protects your contracting business from third-party claims of property damage and bodily injury. Based on our analysis of over 800 contractor quotes, here are the typical costs for Tennessee contractors:
| Revenue Size | Average Premium | % of Revenue | Favorable Rate | Potential Savings |
|---|---|---|---|---|
| $500K | $6,500 | 1.3% | $3,200 | 51% |
| $1M | $10,700 | 1.1% | $6,100 | 43% |
| $2.5M | $28,600 | 1.1% | $15,000 | 48% |
These premiums assume:
- Clean claims history (5+ years without incidents)
- Standard $1M/$2M coverage limits
- Typical mix of residential and commercial work
- Approximately 10% subcontractor costs
Worker’s Compensation Insurance for Tennessee Contractors
Worker’s compensation insurance is mandatory for Tennessee contractors with 5 or more employees. Based on our analysis, Tennessee contractors typically pay around $5,026 per employee annually for workers’ compensation coverage.
Key premium factors include:
- Employee classification codes
- Annual payroll
- Claims history
- Safety programs
- Experience modifier rating (EMR)
For Tennessee contractors, typical workers’ compensation costs per $100,000 of payroll average $12,840, which is moderate compared to other states.
Common contractor classification codes and their approximate rates in Tennessee:
- Code 5606 (Project Manager/Supervisor): $3-5 per $100 of payroll
- Code 5645 (Residential Construction): $8-12 per $100 of payroll
- Code 5403 (Commercial/Large Projects): $12-17 per $100 of payroll
Additional Business Insurance for Contractors in Tennessee
1. Commercial Auto Insurance
- Typical cost: $1,000-$4,000 per vehicle annually
- Required for business-owned vehicles
- Higher limits often needed for larger contractors
- Coverage for accidents, theft, and damage
- Protection for both owned and hired vehicles
2. Tools & Equipment Coverage
- Cost: $1,500-$5,000+ annually for $15k-$50k coverage
- Protects both owned and rented equipment
- Coverage follows equipment to all jobsites
- Protection against theft, damage, and vandalism
- Includes mobile equipment and tools
3. Commercial Property Insurance
- Annual premiums: $2,000-$20,000+ based on property value
- Protects offices, storage facilities, and workshops
- Coverage for fire, theft, vandalism, and natural disasters
- Business interruption coverage available
- Protection for buildings and contents
4. Builder’s Risk Insurance
- Premium: 0.15-0.75% of project value
- Covers projects under construction
- Protection against fire, weather, vandalism
- Coverage for materials and equipment on-site
- Project-specific duration coverage
5. Contractor License Bonds
- Protection for project owners
- Required for certain Tennessee contractor licenses
- Typical cost: 1-3% of bond amount
- Premium varies based on credit and experience
- Guarantees compliance with state regulations
Get Tennessee Contractor Liability with ContractorNerd
ContractorNerd specializes in making insurance simple and data-driven for Tennessee contractors. Our platform offers:
- Instant online quotes from top-rated carriers
- Side-by-side coverage comparisons
- Contractor-specific expertise and guidance
- Streamlined application process
- Ongoing policy management support
- Claims advocacy when needed
Our team of contractor insurance specialists understands Tennessee’s unique requirements and can help you:
- Optimize coverage levels based on your specific risks
- Find competitive rates through our carrier network
- Bundle policies for additional savings
- Ensure compliance with state regulations and contract requirements
To get started with tailored quotes for your Tennessee contracting business, visit our online quote tool or speak with one of our contractor insurance specialists today.