Tennessee Management Liability Insurance

Tennessee’s appellate court has applied the “wholly successful” expense rule to require a director’s entire proceeding to end without a liability finding; it also says a dismissal with prejudice may count, depending on the claim and capacity. For a privately held company, compare the bylaws and indemnification agreement with Sherman v. Anderson, Tennessee Court of Appeals and the policy’s advancement terms.

What Is Management Liability Insurance?

Management liability packages can combine D&O and employment-practices coverage for leader and workplace claims, while benefit-plan protection may be a separate part. Shared limits can let a claim in one part reduce what is available for another, so compare the limits across the quote. Read the national Management liability guide.

What to Watch for With Management Liability in Tennessee

Employment And Corporate Claim Handling
The opinion discusses § 48-18-507 as extending the successful-defense right to certain officers. Tell the broker who was formally a director, officer, or another employee and ask whether the policy’s role definitions follow those positions. Ask how the EPL form handles this allegation type, including wage-and-hour exclusions, defense sublimits, and notice triggers. ¹
Private Company Indemnification
In Sherman v. Anderson, the Tennessee Court of Appeals explained that the full proceeding must end without a liability finding for mandatory expenses under the cited director statute; a dismissal with prejudice could qualify, but the opinion examined whether the person was sued because of her corporate role. As a private company, compare your bylaws and indemnity agreement with the policy’s advancement language; § 48-18-503 does not itself promise insurance payment. ¹
Check The Code Edition And Entity Form
Tennessee directs readers to LexisNexis for the Tennessee Code Annotated and to the legislature for bills that amend it. The cited court decision addresses the for-profit corporation provisions; verify the applicable code text and whether the insured is a corporation, nonprofit, LLC, or another form. Ask who will log the first written notice and confirm the policy reporting date. ¹

Which Management Liability Providers Have Tennessee License Records?

No provider in our research has both a state license record and a listing for this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Who Regulates Insurance in Tennessee?

Tennessee Department of Commerce and Insurance

TDCI regulates and licenses insurance companies, agents, brokers, surplus-lines agents, and public adjusters. Its complaint process accepts complaints about agents or companies when the policy was written in Tennessee, and its property/casualty unit reviews filed policy rates, rules, and forms. ^4,^5,⁶

Website: Regulator website
License lookup: Search licensed producers
Complaints: File a complaint

Surplus-Lines Tax and Stamping Office in Tennessee

Reported tax rate. 5% of gross premium plus 0.175% SLAS transaction fee ^7,⁸

For Tennessee-home-state surplus-lines policies, TDCI lists a 5% tax on gross premium and a 0.175% SLAS transaction fee on gross premium; the agent receives an invoice and pays both through SLIP. The sources reviewed do not establish that the fee is always separately charged to the policyholder or resolve guaranty-association treatment, so ask your broker to itemize charges and review the policy notice.

Questions to Ask Before You Buy Management Liability in Tennessee

Which Tennessee employment-law allegations and agency notices did you account for, and how do the EPL form’s wage-and-hour exclusion and defense sublimit apply?
For our Tennessee private company, when do the charter, bylaws, or indemnification agreements require us to advance a leader’s defense costs, and when does the policy respond?
Does the quote include fiduciary-liability coverage, and which plan fiduciaries need a separate ERISA fidelity bond?
Does the policy treat an agency charge, written demand, and filed lawsuit as separate claim triggers, and what notice date applies to each?

Management Liability Insurance in Tennessee: FAQ

What employment-law exposure should a Tennessee business discuss when buying management liability?

Tennessee’s appellate court has applied the “wholly successful” expense rule to require a director’s entire proceeding to end without a liability finding; it also says a dismissal with prejudice may count, depending on the claim and capacity. The policy notice deadline is separate from any agency filing deadline. ¹

Does Tennessee corporate law determine what a D&O policy pays?

For a privately held company, compare the bylaws and indemnification agreement with Sherman v. Anderson, Tennessee Court of Appeals and the policy’s advancement terms. The statute does not itself define what the insurer must defend or pay; check those terms in the policy. ¹

Is a plan fidelity bond the same as fiduciary-liability insurance for a Tennessee business?

No. ERISA requires a fidelity bond for covered plan fiduciaries who handle plan funds; Tennessee’s appellate court has applied the “wholly successful” expense rule to require a director’s entire proceeding to end without a liability finding; it also says a dismissal with prejudice may count, depending on the claim and capacity addresses a separate company-law issue. Ask whether the policy includes fiduciary-liability coverage in addition to the bond. ^1,^2,³

Sources for Management Liability Insurance in Tennessee

1
Sherman v. Anderson, Tennessee Court of Appeals. Tennessee Courts; Discussion of Tenn. Code Ann. §§ 48-18-503 and 48-18-507; “wholly successful” standard and mixed-capacity claim. Accessed 2026-09-28.
2
29 U.S.C. § 1112, ERISA fidelity bonding. U.S. Government Publishing Office; ERISA § 412(a)–(e): covered plan fiduciaries and persons handling plan funds/property; fraud-or-dishonesty protection; statutory exceptions; amount and procurement rules. Authenticated U.S. Code text records amendments through 2019, accessed 2026-09-28. Accessed 2026-09-28.
3
29 C.F.R. § 2580.412-6, Handling test for ERISA bonding. Office of the Federal Register, Electronic Code of Federal Regulations; Current eCFR displayed as of 2026-09-24; § 2580.412-6(a)–(b): risk-based handling definition, access/control/disbursement examples, negligible-risk qualification. Accessed 2026-09-28.
4
tennessee insurance regulator. State insurance regulator; TDCI official insurance-division and consumer pages describe department scope, review units and complaint role. Accessed 2026-09-28.
5
TDCI Agent/Producer Resources. State insurance regulator; Agent Licensing Section licenses producers, business entities, surplus-lines agents, brokers, and public adjusters; page links to Verify License. Accessed 2026-09-28.
6
File an Insurance Complaint. State insurance regulator; TDCI accepts online complaints about insurers and agents only for policies written in Tennessee; third-party claimants are directed to call. Accessed 2026-09-28.
7
Surplus Lines Filing Procedures. Tennessee Department of Commerce and Insurance; Tax Payments section: 5% gross premium plus .175% of gross premium SLAS transaction fee; agents receive quarterly invoices and pay via ACH in SLIP. Accessed 2026-09-28.
8
Tennessee Public Chapter 446 (2011), T.C.A. §56-14-113. Tennessee Secretary of State; Current tax framework enacted in §56-14-113: 5% applies when Tennessee is the insured’s home state; tax collected from insured in addition to premium. Read with current TDCI filing-procedure page for current fee and SLIP handling. Accessed 2026-09-28.
9
Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
10
Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
11
Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
12
About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
13
Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
14
Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
15
Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.