Turning the vision of running your own restaurant into a reality can bring a lot of rewards, but it can also bring plenty of potential risks. In addition to looking after the health and safety of your customers, you also need to look after the health and safety of your business. Luckily, that's where restaurant insurance comes in to save the day.
Our independent insurance agents are here to break down all kinds of Mississippi restaurant insurance, from the coverage needed by taco stands all the way to fancy seafood chains. Whatever your culinary vision, they'll help find the right flavor of coverage for you.
In short, restaurant insurance is a policy designed to cover all the components involved in your restaurant, from your property and supplies to your employees and customers. Obviously, serving food to the public ties directly into concerns about protecting their health, but restaurant operation comes with many different risks that are important to consider before setting up shop.
Before we look at the specific requirements for the Hospitality State, we'll start with the coverage needed by restaurant owners all over the country. A basic restaurant insurance policy typically includes the following:
Now that we've looked at the typical restaurant insurance policy, it's time to consider any additional coverage you may need. In reality, the basic package is unlikely to include everything you need from an insurance policy. Your agent will help you to identify the areas where you need more coverage, but until then, here's a look at some of the most common add-ons:
Dram shop laws hold a business liable for serving alcohol to minors, as well as for harm caused by an individual who has been overserved by that business — even after they leave your establishment. A state's specific laws and set of associated penalties/fines for violating them can influence your liquor liability coverage needs, and the cost of your coverage.
In Mississippi, as well as most other states, a guest who sustains injuries to themselves due to overintoxication may not sue the establishment, since it's considered the guest's personal responsibility to monitor how much they consume. So, liability coverage for first-party cases is mainly only required in the case that a minor is served, since minors are not legally allowed to drink in any state.
However, third-party liability coverage is crucial. In the case that another individual is harmed by an intoxicated guest, such as in a bar fight or auto accident, they may sue your establishment. For these cases, the third party will need proof that the intoxicated guest continued to be intentionally served past the point of visible intoxication by your restaurant.
Lawsuits can seriously cost you or your business, in the form of significant financial penalties, loss of employment or liquor license, or even jail sentences. Your agent will set you up with the proper liquor liability coverage based on Mississippi's unique laws. They'll also explain the costs associated with each level of coverage.
The Magnolia State gets plenty of visits from hurricanes each year. In fact, it was Mississippi that received a visit from the deadliest hurricane in US history, the Great Galveston Hurricane of 1900, and suffered some serious damage to its coastline. While you're probably not intending for your restaurant to cater to hurricanes, it could happen.
Perhaps unsurprisingly, Mississippi is one of 19 states that require a hurricane deductible as part of a homeowners insurance policy, and since coverage is such a big deal here, grabbing some for your restaurant certainly wouldn't hurt.
Your property insurance typically won't cover hurricane damage, so it's important to double and triple-check your policy.
Talk with your agent about adding hurricane coverage, if your policy doesn't already list it, specifically. Having coverage in place from the start can save you from the aftermath of the destruction storms leave behind, by helping you to avoid paying out of pocket for it.
It depends on what kind of restaurant you run and a few other factors, such as if you've got employees, offer a delivery service, operate a drive-thru or serve liquor. However, a typical range for coverage starts on the low end of about $10,000/year for a smaller establishment with fewer employees, and hits the high end of more than $100,000/year for a much larger restaurant, like a chain.
A restaurant insurance policy is typically the cheapest and easiest way to go. This package offers most of the liability and property coverage you'll need, and you can always add on specifics as necessary. Your independent insurance agent will know exactly what to hook you up with.
Obviously, smaller is going to be cheaper. A food truck or corner stand downtown will be by far the cheapest option, since there won't be as many sales as in a larger chain, there aren't any other employees (that would require workers' comp), and you won't be serving alcohol. Coverage costs would most likely be in the low thousands each year.
On the other end of the spectrum, a large dine-in restaurant chain with tons of employees and features like salad bars, buffets, and liquor bars is by far the priciest/riskiest venture. All the required workers' comp, property and liability insurance drive up costs exponentially.
It ultimately depends on lots of specifics like the number of employees and the value of the property, of course, but we're talking big numbers, like more than $100,000 per year.
Insurance policies are often filled with lots of technical jargon. Additionally, it's a real process to hunt for the RIGHT policy. Fortunately, sifting through the available options and pinpointing the necessary coverage is a task that can easily be handed off to someone else. That's where independent insurance agents come in to save the day.
Independent insurance agents will not only help you get the best possible deal, but also the type of coverage that's right for you. They shop and compare insurance quotes for you, and even break down all that complex jargon into plain old English, so you understand exactly what you're getting.
Our wise and helpful agents will help you determine which type of Mississippi restaurant insurance makes the most sense for YOU. They'll also compare policies and quotes from several different insurance companies to make sure they're setting you up with protection that's among the best around. In other words, they'll make it happen.