Tennessee Cybersecurity Laws You Should Know (2026)

Mitch Wolverton

Tennessee businesses face mounting pressure to comply with both state and federal cybersecurity regulations. Staying up to date with Tennessee cybersecurity laws is essential to protect your business, your customers, and your reputation. Below, we break down the most important IT and cybersecurity laws that apply to Tennessee businesses and provide key insights and resources to help you stay compliant.

Tennessee Cybersecurity Laws

Tennessee Insurance Data Security Law (T.C.A. § 56-2-1001 et seq.)

This law, effective July 1, 2021, applies to insurers licensed in Tennessee. It mandates that insurance carriers must:

  • Implement comprehensive information security programs based on risk assessments.
  • Investigate cybersecurity breaches.
  • Report cybersecurity events to the Tennessee Department of Commerce and Insurance if 250 or more Tennessee residents are affected.
  • Submit an annual compliance certification (or exemption certification) by April 15 each year.

Tennessee Data Breach Notification Law (T.C.A. § 47-18-2107)

This law applies to any individual, business, or government entity that owns, licenses, or maintains computerized personal information of Tennessee residents. Key aspects include:

  • Definition of Personal Information: Includes name plus Social Security number, driver’s license number, or account/credit/debit card number with access credentials.
  • Notification Timeline: Notify affected individuals immediately, but no later than 45 days after discovery or notification of a breach, unless law enforcement determines notice would impede an investigation.
  • Methods of Notification: Written, electronic (E-SIGN-compliant), or substitute notice for large-scale breaches or insufficient contact info.
  • Consumer Reporting Agency Notification: If over 1,000 individuals are affected, notify consumer reporting agencies without unreasonable delay.
  • Third-Party Notification: Service providers must notify the data owner within 45 days of discovery.
  • Safe Harbor for Encryption: No notice is required if compromised data was encrypted and the key was not acquired.
  • Private Right of Action: Individuals harmed by non-compliance can sue for actual damages and injunctive relief.

Tennessee Information Protection Act (TIPA) – Effective July 1, 2025

Passed in 2023 and enforced by the Tennessee Attorney General, TIPA creates broad privacy and data protection requirements.

  • Applicability: Applies to businesses meeting certain revenue and data-processing thresholds.
  • Consumer Rights: Tennessee residents can confirm, correct, delete, or access personal data, and opt out of targeted advertising or data sales.
  • Business Obligations: Maintain a privacy notice, conduct data protection assessments, and implement reasonable security practices.
  • Affirmative Defense: A NIST Privacy Framework-aligned program can be used as a defense in enforcement actions.
  • Enforcement: Civil penalties up to $7,500 per violation.

Tennessee Cybersecurity Event Class Action Safe Harbor (Public Chapter 991)

Enacted in 2024, this law gives private entities safe harbor from class action lawsuits after a cybersecurity incident, unless the breach was caused by willful misconduct or gross negligence.

Federal Cybersecurity Laws That Apply to Tennessee Businesses

  • HIPAA – Requires strict protections for PHI in healthcare.
  • GLBA – Financial institutions must safeguard consumer data.
  • PCI DSS – Security standards for credit card transactions.
  • FTC Act Section 5 – Prohibits unfair or deceptive practices related to data security.
  • COPPA – Protects data from children under 13.
  • SOX – Governs financial record controls for public companies.
  • CIRCIA – Requires certain cyber incident reporting for critical infrastructure.
  • DFARS – Cybersecurity requirements for DoD contractors.
  • NYDFS 23 NYCRR 500 – Applies to some Tennessee businesses serving New York clients.

More Tennessee Cybersecurity Laws to Be Aware Of

This list is not exhaustive. Industries such as energy, defense, education, and infrastructure may also have to comply with federal agency requirements such as those from FERC or DHS.

Conclusion

Complying with Tennessee’s cybersecurity laws—from the Insurance Data Security Law and Data Breach Notification Law to new requirements under TIPA and the Safe Harbor provision—is essential for Tennessee businesses. Following these regulations helps safeguard customer data, avoid costly penalties, and maintain public trust.

If you need help navigating compliance, we offer tailored solutions to keep your data secure and operations compliant.

Read: South Carolina Cybersecurity Laws You Should Know

North Carolina Cybersecurity Laws You Should Know

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Readers should consult qualified legal counsel for advice specific to their organization or situation.

Mitch Wolverton

Mitch, Marketing Manager at PivIT Strategy, brings over many years of marketing and content creation experience to the company. He began his career as a content writer and strategist, honing his skills on some of the industry’s largest websites, before advancing to specialize in SEO and digital marketing at PivIT Strategy.