What Insurance Do Contractors Need in Tennessee?

Insurance Requirements for Tennessee Contractors

Contractors in Knoxville and across Tennessee have to meet state licensing requirements, and most general contractors, property managers, and public agencies add their own insurance requirements before they’ll award a job. Here’s what you need to know.

Licensing

The Tennessee Board for Licensing Contractors requires a contractor’s license for projects of $25,000 or more, and some trades and home improvement work in certain counties require a license at lower amounts. Licensing applicants have to show proof of insurance, so having the right coverage in place is part of getting and keeping your license.

Workers’ compensation

Tennessee’s workers’ comp rules are stricter for construction than for most industries. Construction employers generally must carry workers’ compensation with even one employee, while many other businesses don’t have to until they have five. Sole proprietors and partners in construction can register for an exemption with the state, but many GCs still require a policy before you step on their job site.

General liability insurance

General liability covers injuries and property damage you cause on the job. GCs, commercial property owners, and public agencies usually ask for certificates of insurance with specific limits and additional insured endorsements.

Other coverage to consider

• Commercial auto for work trucks and vans, since personal auto policies often exclude business use
• Tools and equipment (inland marine) coverage for gear on job sites and in your truck
• Builder’s risk for projects under construction
• Umbrella coverage for higher contract limits

Contractors must keep the required insurance in place for the entire term of a contract. Not having insurance when it’s needed is like adding salt to a wound. Let us help you prepare for the inevitable. Contact us today for a no-obligation quote.