Business Insurance — Workers' Compensation (5+ employees), General Liability, Liquor Liability: Nashville restaurant guide
Tennessee Bureau of Workers' Compensation / private carriers
What it is
Tennessee requires non-construction employers with five or more employees to carry workers' compensation insurance. General liability is a lease and lender requirement, and liquor liability protects you once you serve alcohol; Metro's valet permit and most landlords also want a certificate naming them as additional insured.
When a restaurant needs it
Workers' comp before you reach five employees (count all employees, not members or sole proprietors); liability policies before construction starts and before opening.
How to apply
Buy a policy from a licensed Tennessee workers' compensation carrier (or qualify as self-insured through the Dept. of Commerce & Insurance); bind general and liquor liability through a broker and ask for certificates of insurance.
Documents you’ll need
- Entity name and EIN
- Estimated payroll and head count
- Square footage, seats and alcohol sales estimate
- Certificate-holder names (landlord, Metro Government for valet permits)
Good to know
Sole proprietors, LLC members and partners are not counted toward the five; full-time corporate officers are counted unless they opt out on Form I-6. Once you reach five you can't drop coverage just because head count later dips.
Official source
TN Bureau of Workers' Compensation — who must carry insurance (non-construction) · TN Workers' Comp — coverage overview, penalties and posting
Answer a few questions about your space and get every permit in order, with a timeline, a cost range, walkthroughs, and every application filled in for you to sign with Open.
Last reviewed 2026-10-06. Guidance only, not legal advice.