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Protecting Your Business With General Contractor Insurance in Tennessee From The Allen Thomas Group Insurance Agency
Do Tennessee contractors need insurance? Absolutely. Operating a construction business without adequate insurance poses tremendous legal and financial risks.
What about small contractors or sole proprietors – can they depend on personal policies? Unfortunately, no.
Tennessee statutes require even modest home improvement contractors and small businesses to carry General Liability and Worker’s Compensation insurance.
What about exemptions?
Outside of the narrowest exceptions for agriculture, most contractors need licenses and requisite insurance to work legally across the state’s residential and booming commercial sectors.
Looking for an insurance quote for your Tennessee business?
Get it now!
Navigating the Mandatory Maze of Insurance for Contractors in Tennessee
Unlike other states, Tennessee makes General Liability insurance mandatory for nearly all contractor license types – home builders, plumbers, and roofers.
Your insurance needs and required coverage amounts vary based on project size and risk level assessed by the Tennessee Board for Licensing Contractors.
On top of this state-regulated maze, staying compliant and financially protected with different types of insurance requires working with an insurance agency that knows the local landscape.
The Allen Thomas Group understands that need for business insurance varies from one business to another.
We specialize in making contractor insurance affordable for big and small business owners across Nashville, Memphis, Knoxville, and everywhere.
Let us help you understand what insurance contractors may need so you can get the best coverage with us today!
Table of Contents
Key Contractor Insurance Coverage Types for General Contractors
This crucial Tennessee business insurance policy is mandatory for nearly every contractor in the state.
General liability coverage protects your business if you cause property damage on the job, or if clients sue for bodily injuries like trips and falls.
General liability insurance covers claims that hold your Tennessee small business responsible for third-party injury or property damage.
With material prices and medical costs continually rising – not to mention more litigious customers – contractors can’t afford to risk going without general liability insurance in Tennessee.
The competitive construction landscape also makes carrying adequate small business insurance coverage to satisfy contract requirements necessary.
We partner with top-rated carriers to help general contractors get general liability policies specific to your contractor niche at the best rates.
Even with iron-clad General Liability insurance and other core policies, major claims can exceed limits – putting Tennessee contracting businesses at risk of bankruptcy.
Commercial umbrella insurance is affordable added coverage protecting against 6 and 7-figure lawsuits or damage expenses standard policies may cap out on.
With fierce competition statewide and litigious customers, this crucial construction insurance brings peace of mind knowing your assets stay protected if the worst arises.
Even seasoned construction pros make occasional mistakes, resulting in financial harm to clients if not adequately insured.
From bringing inadequate materials to a site to design defects escaping notice till completion, E&O insurance, also known as professional liability insurance, covers the gaps.
Business liability insurance can help resolve allegations of negligence and other unintentional professional mistakes that could sink an otherwise thriving contracting business.
Transporting expensive tools, materials, and crews safely between job sites is paramount.
Car accidents put more than just your vehicles at risk – they jeopardize entire project timelines, impacting profitability.
Yet many falsely assume personal auto policies extend to work vehicles which can spell disaster.
Our team ensures your Tennessee general contractor business has commercial auto insurance for contractors meeting TN liability minimums while custom-fitting coverage for work trucks, cargo/builders’ risk, and rental vehicles if needed.
Protecting complex residential builds or commercial structures under construction from unforeseen damage is crucial.
Rising weather volatility makes builder’s risk insurance a safeguard for contractors across Tennessee facing tight budgets.
Covering expenses if storms, fires, or accidents compromise unfinished projects keeps contractors solvent.
For most contractors, expensive assets like backhoes, tile cutters, and scaffolding are essential to daily operations when properly insured.
Standard insurance for general contractors often excludes or limits tool coverage while in transit between job sites – leaving hundreds of thousands of dollars in specialty equipment vulnerable.
Our tools and equipment Insurance protects against physical damage, theft, and other costly exposures contractors face. We also provide appraisals ensuring you’ve got ample coverage as your inventory grows.
Considered the “grand bargain” between employers and employees – Tennessee workers’ compensation insurance is a mandatory coverage that foots the bill for worker injuries in exchange for employees giving up the right to sue employers in the construction industry.
Workers comp Insurance provides coverage for extensive medical fees and lost wages that add up fast.
With TN workplace injury cases totaling over $244 million in 2020, going without workers’ comp threatens general contracting businesses of any scale.
Let us build a compliant workers’ compensation policy meeting state statutes and your insurance requirements while controlling premium costs.
For contractors transporting expensive tools and equipment between projects, unforeseen damage or theft spells disaster.
Yet many general contractors in Tennessee assume that their General Liability or commercial property insurance offers protection here when most don’t.
We secure specialty Inland Marine insurance as an affordable complement guarding against lost or stolen assets like bulldozers, backhoes, tile cutters, and more that keep contractors in business.
Navigating Surety Bond Requirements in Tennessee
Much like insurance, surety bonds play an important role in safeguarding residential and commercial construction projects in Tennessee.
The state legally mandates licensed contractors to carry surety bonds, typically $10,000 to $100,000+ based on their Tennessee general contractor license type, as additional consumer protection.
However, confusion around statute details, securing bonds, and associated costs can cause headaches for small contracting businesses.
Licensing Triggers Bond Requirements
Most contractors legally need bonds before working– whether as LLCs or sole proprietors.
This includes residential builders, electricians, plumbers, and HVAC companies working regularly on projects involving homes, light commercial builds, multifamily housing, and large government projects.
Certain niche and municipally licensed contractors face more flexible rules in some areas.
Exemptions Depend on Project Size
Smaller handymen can get exemptions if taking jobs under $25,000.
Agriculture construction, additions, or repairs on a contractor’s own property may also waive minimums.
Yet most working routinely on residential improvements, commercial builds, or renovations need adequate bonding tied directly to their state-issued contractor license type and classification.
Bond Amounts Vary
Minimum bond requirements range widely based on the license in Tennessee classifications and risk level associated with the contractor.
Minor trade work may call for only $10k, while extensive home-building projects can mandate bonds upwards of $100k or more.
Understanding where your business falls across this spectrum is imperative when securing initial or renewing existing bond.
Insurance Solutions Customized For You Contractors
Yes, Getting A Certificate Of Insurance Is Really That Easy
We know how frustrating and complex the process of finding the right insurance can be and how it slow down your ability to take care of your customers especially when you are waiting for bonds or a Certificate of Insurance (COI).
Let us help fix it for you.
Tell us about your specific needs and we will find the right policy for you.
Review the results of our search.
We will walk you through your new policy step by step.
We’ve helped thousands of Tennessee Businesses Like You
Our Carrier Partners
That allows us to find the best rates for your construction business
How The Allen Thomas Group Helps Contractors Get the Right Business Insurance in Tennessee
Finding the right contractor insurance at competitive rates is complex – but it doesn’t have to be with the right partner by your side.
Trust your needs for insurance and risk management with The Allen Thomas Group.
We specialize in:
Accessible Expertise & Options: Getting quotes is easy with our online portal, allowing you to self-serve on your schedule. Or work directly with our Tennessee-based experts who are equipped to explain options and the claims process in everyday language.
Affordable Packages: Leveraging long-standing partnerships with leading commercial insurance providers, we get bundled policies that check every box at competitive prices.
Peace of Mind: Our licensing and certification support ensures your bases are covered when securing contracts for government and other regulated projects. We look out for your business so you can focus on building outstanding projects.
As insurance experts, we excel in providing tailored protection for contractors to meet all of your business insurance requirements.
We work closely with custom builders, remodelers, roofers, and trade companies across markets. Our decades of combined expertise catering to these niches means finding policies addressing exposures unique to Tennessee residential builders.
Commercial & Government Contractor Insurance
Managing commercial construction’s risks and regulatory demands requires next-level insurance for contractors. Developers understand the high stakes of complex government builds as infrastructure ramps up – making The Allen Thomas Group a valued asset.
Getting Your Certificate of Insurance is easy with us. We fulfill your business insurance needs.
Don’t let securing comprehensive affordable Tennessee contractor insurance keep you from returning to what matters most – elevating communities through quality craftsmanship.
The Allen Thomas Group offers next-level support, removing roadblocks to help your construction business thrive.
Get peace of mind protecting what you’ve built by contacting our experts for a free quote today.
People Also Ask
Get More Insights On Making The Right Insurance Decision For Your Company
What is the cost of business insurance for Tennessee contractors?
Predicting Tennessee contractor insurance costs is tricky! It depends on your trade, project size, insurance you need, and business location.
While general liability might range from $800 to $5,000 annually and workers’ comp from $400 to $2,000 per employee, the best way to get an accurate quote is to talk to a Tennessee insurance agent.
They can factor in your specific needs and find the best value coverage for your contracting business.
What type of insurance is required in Tennessee for contractors?
Tennessee requires contractors working on projects over $25,000 to have:
General Liability Insurance: This insurance will cover them against financial losses from property damage or injuries caused to others during the project.
Workers’ Compensation Insurance: Covers medical expenses and lost wages for work-related injuries or illnesses to employees.
Additional coverages like commercial auto insurance for contractors’ and builders’ risks are often recommended but not mandatory.
Always check specific license requirements required by Tennessee law and consult with an insurance professional for tailored coverage plans to protect your Tennessee business.
Do contractors have to be licensed in Tennessee?
Yes, contractors in Tennessee must be licensed for projects exceeding $25,000 (including materials and labor).
This applies to both prime (general) contractors and some subcontractors based on their specific trade and project value.
Ensure your contractor is licensed by checking the State’s online database or contacting the Board for Licensing Contractors. Remember, hiring an unlicensed contractor is risky and could result in legal and financial troubles. Insurance helps safeguard you from many potential risks.
What is full coverage insurance in Tennessee?
While “full coverage” isn’t a legal term in Tennessee, it typically refers to insurance exceeding state minimums. This often includes:
- Higher liability limits: Protecting you financially if you injure someone or damage their property.
- Collision and comprehensive coverage: Repairing or replacing your own vehicle in case of accidents, theft, or other events.
Remember, specific needs vary. Speak to an agent to learn how insurance can provide security and protect your business. Get the right insurance packages for contractors and construction teams with an insurance specalist.
How do you check if a contractor is licensed and insured in Tennessee?
What does the Tennessee Department of Commerce and Insurance do?
The Tennessee Department of Commerce and Insurance wears two hats: protecting Tennesse businesses by regulating industries like insurance and ensuring fair business practices.
The U.S.-based insurance entity empowers professionals with resources and support to succeed ethically.
It’s both a consumer watchdog and a champion for responsible businesses.
Additional Resources And Links For Tennessee Contractors Seeking Insurance
- Tennessee Board for Licensing Contractors: https://www.tn.gov/commerce/regboards/contractors.html
- Tennessee Department of Commerce & Insurance: https://www.tn.gov/commerce.html
Insurance Information:
- National Association of Home Builders (NAHB): https://www.nahb.org/advocacy/nahb-policies/insurance-resolutions
- Associated Builders and Contractors (ABC): https://insurancetrust.abc.org/Group-Benefits
- The Insurance Information Institute (III): https://www.iii.org/index.html
We Provide Coverage Options For All Trades Listed Below
- Appliance Repair
- Carpenter
- Concrete Contractor
- Drywall Contractor
- Electrician
- Excavation
- Fence Installation
- Flooring Contractors
- General Contractor
- HVAC Contractor
- Handyman Services
- Home Renovation and Remodeling
- Landscaper
- Masonry
- Painter
- Paving Contractor
- Plumber
- Roofing Contractor
- Sheet Metal Contractor
- Snow Plowing
- Steel Erection
- Tile Installation Contractor
- Utility Contractor
Tennessee Cities We Serve
Alcoa
Algood
Arlington
Ashland City
Athens
Atoka
Bartlett
Bloomingdale
Bolivar
Brentwood
Bristol
Brownsville
Chattanooga
Church Hill
Clarksville
Cleveland
Clinton
Collegedale
Collierville
Columbia
Cookeville
Coopertown
Covington
Crossville
Dayton
Dickson
Dunlap
Dyersburg
Eagleton Village
East Ridge
Elizabethton
Erwin
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Fairview
Farragut
Fayetteville
Forest Hills
Franklin
Gallatin
Germantown
Goodlettsville
Greenbrier
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Green Hill
Harriman
Harrison
Harrogate
Hartsville
Henderson
Hendersonville
Humboldt
Jackson
Jefferson City
Johnson City
Jonesborough
Kingsport
Kingston
Knoxville
Lafayette
La Follette
Lakeland
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Lawrenceburg
Lebanon
Lenoir City
Lewisburg
Lexington
Livingston
Loudon
Louisville
Lynchburg
Madisonville
Manchester
Martin
Maryville
McKenzie
McMinnville
Medina
Memphis
Middle Valley
Milan
Millersville
Millington
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Mount Carmel
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Mount Pleasant
Munford
Murfreesboro
Nashville
Newport
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Oak Grove
Oak Hill
Oakland
Oak Ridge
Paris
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Portland
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Ripley
Rockwood
Rogersville
Savannah
Selmer
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Seymour
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Signal Mountain
Smithville
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South Cleveland
Sparta
Springfield
Spring Hill
Spurgeon
Sweetwater
Tellico Village
Thompson’s Station
Trenton
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Union City
Waverly
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