Automotive Business Insurance in Tennessee

Business types with their own guide

• Auto Repair Shop Insurance Damage to customer cars in your shop, and more. Read the auto repair shop insurance guide.
• Auto Body Shop Insurance Paint booth fires, and more. Read the auto body shop insurance guide.
• Car Wash and Detailing Insurance Damage to cars from wash equipment, and more. Read the car wash and detailing insurance guide.
• Tire Shop Insurance Wheels coming off after service, and more. Read the tire shop insurance guide.
• Towing Insurance Damage to vehicles while towing, and more. Read the towing insurance guide.
• Auto Dealer Insurance Hail or storm damage to inventory, and more. Read the auto dealer insurance guide.

More automotive businesses

These business types share many of the same risks. Each has a short overview below.

Auto parts store

Auto parts stores sell products that customers install on their own cars, which raises product questions. Products liability, property coverage for inventory, and crime coverage are key.

Oil change and quick lube

Quick lube shops work fast on customers’ cars. Garage liability and garagekeepers for customer vehicles, plus workers’ comp, are central.

Gas station

Fuel sales add pollution and fire exposures to convenience store risks. Ask about coverage designed for fuel, plus crime and general liability.

Coverages common in automotive

• Garage liability and garagekeepers Covers liability from your auto operations and damage to customers’ vehicles while in your care.
• Commercial property Covers your building (if you own it), equipment, furniture, and inventory after covered losses like fire or theft.
• Workers’ compensation Pays medical bills and lost wages if an employee is hurt on the job, and includes employer’s liability.
• Commercial auto Covers vehicles used for the business. Personal car insurance policies often exclude or limit business use.
• Commercial umbrella Adds higher liability limits above your general liability, auto, and employer’s liability.
• Tools and equipment (inland marine) Covers tools and gear that travel to job sites or customer locations, or sit in your truck.

All coverage is subject to underwriting and policy terms. Not every business needs every coverage.

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.

Commercial plates. In Tennessee, a vehicle with a commercial license plate must be covered under a commercial auto policy, according to the Tennessee Department of Revenue.

We can review your requirements and help you shop workers’ compensation and other coverages, subject to underwriting.

Certificates of insurance

Landlords, clients, venues, and general contractors often ask for a certificate of insurance before you start. If they want to be an additional insured, the policy usually needs an endorsement. Our certificate of insurance checklist explains what to check.

Related guides

• All business types
• Business insurance in Middle Tennessee
• General liability insurance
• Small business insurance checklist (PDF)
• Starting a business in Tennessee