Restaurant Insurance in Tennessee
The policies a Tennessee restaurant, bar, food truck, or catering operation needs — what the state requires, what's strongly advised, and what it costs.
Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .
In Tennessee, a restaurant's core program is general liability, a property or business-owner's policy (BOP), and commercial auto for any delivery. Workers' compensation is mandatory once you hire staff, and dram-shop law exposes any alcohol-serving business, so liquor liability is strongly advised. This hub compares Tennessee's workers' comp and liquor-liability rules and cost alongside the coverages every restaurant and bar should carry.
- Workers’ comp
- Required once you hire staff
- Liquor liability
- Dram-shop law applies — strongly advised
- Dram-shop law
- Yes
- Suggested liquor limits
- $1M/$2M; bars and nightclubs often $2M/$4M
Workers’ compensation in Tennessee
It depends on size. Tennessee requires workers' compensation only for non-construction employers with five or more employees, so a small cafe with four or fewer staff may be exempt. Minors, family, and part-time workers count toward five, but sole proprietors, partners, and LLC members do not. Construction restaurants need coverage with even one employee.
Full Tennessee workers’ comp guide — thresholds, exemptions, and rates →
Liquor liability & dram-shop law in Tennessee
Tennessee has a dram shop law but sets an unusually high bar. By statute, consumption — not the furnishing — of alcohol is the proximate cause. Recovery against a seller is allowed only if a jury of twelve finds beyond a reasonable doubt that the sale was to a minor or a visibly intoxicated person and proximately caused the harm.
Full Tennessee liquor-liability guide — the statute, limits, and cost →
Coverages every Tennessee restaurant should weigh
- General liability
Third-party slip-and-fall and property-damage claims — the foundation policy.
- Business owner’s policy (BOP)
Bundles general liability with property coverage for your building, equipment, and contents.
- Commercial property
Kitchen equipment, tenant improvements, signage, and inventory.
- Commercial & hired/non-owned auto
Delivery, catering runs, and errands in owned or employee vehicles.
- Employment practices (EPLI)
Harassment, discrimination, and wrongful-termination claims from staff.
- Umbrella
Extra limits above your liquor, auto, and general liability policies.
Tennessee regulators
Talk to an agent who insures food & beverage every day
A licensed commercial-lines agent who specializes in restaurants and bars will review your coverage, close the gaps that catch owners, and show you what a program actually costs — before anything is bound.