Food and Beverage Business Insurance in Tennessee

Business types with their own guide

• Restaurant Insurance Customer slip-and-falls in dining areas and restrooms, and more. Read the restaurant insurance guide.
• Food Truck Insurance Accidents while driving between events, and more. Read the food truck insurance guide.
• Catering Insurance Foodborne illness or allergy claims at an event, and more. Read the catering insurance guide.
• Bakery Insurance Allergy claims from nuts or other allergens, and more. Read the bakery insurance guide.
• Coffee Shop Insurance Hot drink burns, and more. Read the coffee shop insurance guide.
• Bar Insurance Claims from serving an intoxicated customer, and more. Read the bar insurance guide.
• Grocery Store Insurance Customer slip-and-falls in aisles, and more. Read the grocery store insurance guide.

More food and beverage businesses

These business types share many of the same risks. Each has a short overview below.

Specialty food store

Cheese shops, butcher shops, and gourmet markets face spoilage, slip-and-falls, and product claims. A business owner’s policy with spoilage and equipment breakdown is a common base, plus liquor liability if you sell beer or wine.

Farmers market vendor

Market organizers in towns like Franklin, Murfreesboro, and Lebanon may ask vendors for proof of general liability. If you sell food you make, products liability matters, and coverage for your tent and equipment can help after wind or theft.

Night club and music venue

Clubs combine alcohol, crowds, music, and late hours. Liquor liability, assault and battery coverage, and higher general liability limits are usually the main conversation, along with security staff and workers’ comp.

Coverages common in food and beverage

• Business owner’s policy (BOP) Bundles general liability with coverage for your business property, and often business income, for many smaller businesses.
• General liability Helps if your business is blamed for injuring someone or damaging their property, and usually pays for a legal defense.
• Spoilage Covers food or other perishable stock lost to a power outage or equipment breakdown.
• Equipment breakdown Covers sudden mechanical or electrical breakdown of things like coolers, compressors, and HVAC.
• Workers’ compensation Pays medical bills and lost wages if an employee is hurt on the job, and includes employer’s liability.
• Liquor liability Covers claims that someone you served or sold alcohol to hurt someone or damaged property. Often excluded from general liability.
• Cyber liability Helps respond to data breaches, ransomware, and payment fraud, including notifying customers.

All coverage is subject to underwriting and policy terms. Not every business needs every coverage.

Tennessee rules to know

Workers’ comp. Most Tennessee employers outside construction and coal mining must carry workers’ compensation once they have five or more employees, full- or part-time, per the Tennessee Department of Labor and Workforce Development. Even below that number, many owners choose to carry it.

Alcohol sales. If you sell or serve alcohol, you’ll need the right state and local permits. Landlords, event venues, and some permits may also expect proof of liquor liability coverage, so ask before you sign.

We can review your requirements and help you shop workers’ compensation and other coverages, subject to underwriting.

Certificates of insurance

Landlords, clients, venues, and general contractors often ask for a certificate of insurance before you start. If they want to be an additional insured, the policy usually needs an endorsement. Our certificate of insurance checklist explains what to check.

Related guides

• All business types
• Business insurance in Middle Tennessee
• General liability insurance
• Small business insurance checklist (PDF)
• Starting a business in Tennessee