Coverage line

An intricate mechanical lock holds a small cloud of blank digital tokens.Illustration for The General Average

What Digital asset business insurance Requirements Apply in Tennessee?

Tennessee’s 2026 law makes knowingly installing, permitting, placing, or operating a virtual-currency kiosk a Class A misdemeanor effective July 1, 2026. FinCEN separately classifies personal use differently from businesses that exchange, administer, or transmit virtual currency, so give your broker the exact customer, custody, and transfer flow before comparing policy terms.

What Is Digital Asset Insurance?

Digital-asset coverage may address custody, theft and business-liability risks, but a custodian’s policy may protect the custodian rather than you. If you hold or safeguard assets, verify the insured entity, wallets, key-loss protection and valuation. Read the national Digital assets guide.

What Should You Watch for With Digital Asset Insurance in Tennessee?

Map the State-Law Trigger
Tennessee’s current restriction reaches the property owner or other person who knowingly permits installation, not only the company running a kiosk. If your business leases sites or supplies machines, confirm the current legal status before seeking kiosk coverage. ¹
Separate Licensing From Asset Protection
The Department’s 2026 bulletin names both licensees and applicants, so an application or older license does not make a prohibited kiosk operation safe. Ask your broker to describe any Tennessee site exposure precisely. ¹
Describe the Actual Service
For digital-asset services other than kiosks, distinguish customer custody and transfer services from proprietary trading. Ask whether the policy covers each line of business rather than assuming the kiosk rule answers all coverage questions. ¹

Which Digital Asset Providers Have Tennessee License Records?

No provider in our research documents both a state license record and 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. ^3,^4,⁵

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 ^6,⁷

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 Digital Asset in Tennessee

Does this policy cover the Tennessee service and legal entity that actually receives, holds, or transfers customer assets?
How does the form treat customer property, keys, and assets held by a custodian or third-party wallet provider in Tennessee?
Are regulatory defense, fraud response, and customer claims covered when a state-specific licensing or kiosk rule affects our operation?

Digital Asset Insurance in Tennessee: Frequently Asked Questions

Is a digital-asset business required to get a license in Tennessee?

It depends on the activity. Tennessee’s 2026 law makes knowingly installing, permitting, placing, or operating a virtual-currency kiosk a Class A misdemeanor effective July 1, 2026. Ask the state regulator how the rule applies to your exchange, custody, and transfer functions. ¹

Does a federal money-services-business analysis settle Tennessee licensing?

No. FinCEN distinguishes personal use from business exchange or administration under federal BSA rules. For Tennessee, start with this rule: Tennessee’s 2026 law makes knowingly installing, permitting, placing, or operating a virtual-currency kiosk a Class A misdemeanor effective July 1, 2026. Check both analyses against your actual customer and transfer flows. ^2,¹

Does a money-transmitter license insure customer crypto in Tennessee?

No. The rule in Tennessee—Tennessee’s 2026 law makes knowingly installing, permitting, placing, or operating a virtual-currency kiosk a Class A misdemeanor effective July 1, 2026.—sets a regulatory boundary; it does not promise to reimburse customer token losses. Review the policy’s insured entities, covered assets, causes of loss, and custody terms. ¹

Sources

14 documents, numbered as cited. Open the sources

Sources for Digital Asset Insurance in Tennessee

1
Virtual Currency Kiosks. Tennessee Department of Financial Institutions; Public Chapter 766, Acts of 2026; effective July 1, 2026. Accessed 2026-09-29.
2
Application of FinCEN’s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies. Financial Crimes Enforcement Network; FIN-2013-G001, Users of Virtual Currency; Administrators and Exchangers of Virtual Currency. Accessed 2026-09-29.
3
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.
4
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.
5
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.
6
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.
7
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.
8
Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
9
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.
10
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.
11
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.
12
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.
13
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.
14
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.