E-commerce Business Insurance in Tennessee

Common risks for online sellers

• Products that injure customers
• Data breaches or account takeovers
• Inventory stored at home or in a warehouse
• Shipments lost or damaged in transit
• Intellectual property or advertising claims

Coverages online sellers often consider

• General liability Helps if your business is blamed for injuring someone or damaging their property, and usually pays for a legal defense.
• Products liability Covers injury or damage caused by products you make, sell, or distribute. Usually part of general liability.
• Cyber liability Helps respond to data breaches, ransomware, and payment fraud, including notifying customers.
• Commercial property Covers your building (if you own it), equipment, furniture, and inventory after covered losses like fire or theft.
• Tools and equipment (inland marine) Can cover goods in transit to customers, subject to policy terms.
• Professional liability (E&O) Covers claims that your advice, design, or professional service caused a client a financial loss.

Not every business needs every coverage. The right mix depends on your work, your contracts, and your budget. All coverage is subject to underwriting and the terms of the policy.

What a claim could look like

For example, imagine a candle you sell online overheats and scorches a customer’s table. The customer files a claim. A claim like that may go to general liability, depending on the facts and policy terms.

This is a hypothetical example for education only. Whether any claim is covered depends on the facts and your policy terms.

Tennessee rules to know

Workers’ comp. Most Tennessee employers outside construction and coal mining must carry workers’ compensation once they have five or more employees, full- or part-time, per the Tennessee Department of Labor and Workforce Development. Even below that number, many owners choose to carry it.

We can review your requirements and help you shop workers’ compensation and the other coverages above with carriers that write online sellers, subject to underwriting.

Certificates of insurance

Marketplaces and wholesale buyers may require proof of product liability coverage. Ask your agent for the exact limits they need.

A certificate of insurance shows your coverage on the day it’s issued. If a contract asks for additional insured status or a waiver of subrogation, the policy usually needs an endorsement, not just a line on the certificate. Our certificate of insurance checklist walks through what to check.

What affects the cost

• The type of work you do and how it’s classified
• Annual revenue and payroll
• Number of employees and any subcontractors
• Where you work and the value of your equipment or property
• The limits and deductibles you choose
• Your claims history and years in business

We can’t promise a price ahead of time, but we can compare options and explain the trade-offs in plain English.

How Eric can help online sellers

Shops on the squares in Franklin, Lebanon, and Gallatin, and stores in Nashville, Hendersonville, and Murfreesboro, all face holiday rushes, storms, and landlord insurance requirements. As an independent agent affiliated with Hutsenpiller Insurance, Eric can review what you have, read your contract requirements with you, and help you shop options with more than one carrier. See how an independent agent works for you.

Related guides

• Retail Business Insurance in Tennessee
• All business types we can help
• Business insurance in Middle Tennessee
• General liability insurance
• Certificates and additional insureds explained
• Business interruption insurance
• General liability vs. professional liability
• Small business insurance checklist (PDF)
• Certificate of insurance checklist (PDF)