Restaurant Insurance in Tennessee: 2026 Cost Guide

How Much Does Restaurant Insurance Cost in Tennessee?

Restaurant insurance in Tennessee averages $142 per month for general liability coverage alone. A comprehensive insurance package — including general liability, commercial property, and workers' compensation — typically runs between $1,969–$3,326 per year for a typical full-service restaurant.

Here's what you can expect to pay for individual coverage types in Tennessee:

These figures are based on a typical full-service restaurant with 10-20 employees and $500,000–$1,500,000 in annual revenue. Your actual costs will depend on your specific location within Tennessee, claims history, employee count, and coverage limits.

Tennessee-Specific Insurance Requirements

Tennessee's restaurant insurance is moderately priced, but Nashville's booming hospitality scene has driven up costs in the metro area. The 2020 Nashville tornado that struck the downtown restaurant/bar district highlighted the importance of adequate property and business interruption coverage. Tennessee's 5-employee workers' comp threshold is one of the higher triggers nationally. Memphis's restaurant scene has different risk factors including higher urban crime rates.

Required Coverages in Tennessee

• General Liability
• Workers' Compensation (5+ employees)

Recommended Additional Coverages

• Commercial Property
• Liquor Liability
• Business Interruption
• Umbrella/Excess Liability

Tennessee Risk Factors That Affect Insurance Costs

Tennessee faces tornado risk across the state—the 2020 Nashville tornado and 2023 events highlighted the threat to urban restaurant districts.

Nashville's explosive restaurant and bar scene has created one of the most competitive hospitality markets in the Southeast, with increasing liability exposure.

Flooding is a significant risk, particularly in Nashville (2010 flood) and Memphis, adding to property insurance costs.

Best Restaurant Insurance Companies in Tennessee

We've identified the top insurance providers serving Tennessee restaurants. Simply Business is our top pick for most Tennessee restaurants based on coverage options, pricing, and customer satisfaction.

Workers' Compensation Rules in Tennessee

Tennessee requires workers' comp for employers with 5 or more employees. Coverage is available through private insurers.