Contractors Insurance in Tennessee

Contractors planning to do business in Tennessee will need to do some research to determine licensing requirements by the state of Tennessee. Tennessee currently offers several types of licenses that depend on the type of contracting work you do and the size of the project in dollars and cents.

Tennessee offers licenses in the following trades: Contractors, Electricians, Plumbers, and Home Improvement Contractors. Each contractor is licensed based on the size of the project: $25,000 or more and $25,000 or less. For complete information on licensing requirements in Tennessee, contractors should visit the TN Department of Commerce & Insurance website.

Tennessee’s workers’ compensation insurance requirements are rather strict but straightforward regarding who must carry workers’ comp insurance. Every employer in the construction or coal mining business or trades (regardless of the number of employees, including subcontractors), and every employer with five or more employees must carry coverage. Workers’ comp can be purchased from any licensed commercial insurance company that offers workers’ compensation insurance. Employers should visit the TN Department of Labor & Workforce Development for more information.

Protect Your Business with Contractors Insurance from Fairbanks Insurance

Whether or not your business is required to be licensed in Alabama, it’s critical that you protect your business and mitigate your risks with contractors insurance from highly-rated insurance companies.

Here is What We Recommend:

General Liability

General Liability from Fairbanks Insurance should be the foundation of your insurance portfolio. Your general liability policy provides protection from common risks such as:

  • Liability resulting from bodily injury or property damage to a third-party
  • Contractual liability that comes with contractual agreements you enter into
  • Products Completed Operations that protects your business if there are problems with products you produce or install
  • Defense Costs – Any legal action that is filed against your business will require a response from an attorney. Your insurance company will pay to respond and defend your business

Workers' Comp

Almost every state requires that contractors carry workers’ compensation insurance to protect their employees and uninsured subcontractors. This important coverage takes care of medical costs, lost wages, and a partial death benefit if your employees suffer a work-related injury or illness.

Commercial Auto

Any vehicle that is owned or used by your company should be insured under a Commercial Auto policy. A commercial auto policy provides higher liability limits and there are typically no limits on the number of vehicles or drivers on the policy. Your commercial auto insurance provides protection for liability and damages or the replacement of your insured vehicles.

Tool Coverage

Contractors use many types of tools and special equipment that can be very expensive to replace if they are damaged or stolen at the jobsite, in transit, or in storage. When your business is covered by a contractors’ inland marine policy, these risks are transferred to an insurance company that will pay to repair or replace your tools and equipment.

Surety Bonds

Although most state licensing boards require a surety bond before they will issue your license, you will likely need additional bonds for bidding on projects or working on government projects.

Fairbanks Insurance Brokers is a leader in providing contractors insurance and is dedicated to providing Contractors and Builders the finest insurance protection at the lowest rates throughout the construction community.

With savings up to 65% on General Liability, Workers’ Compensation, Commercial Auto and Bonds, you can count on us to do the heavy lifting and provide you the most competitive quote that includes all the discounts for which you qualify.


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