Memphis Restaurant Insurance

Memphis is most famous as the home of Elvis Presley, known worldwide as the King of Rock ‘n’ Roll. Tourists are drawn to the city’s pleasant location along the Mississippi River, where they can find many musical attractions. Maybe that’s why you decided to open a restaurant on Beale Street, the most fun and popular place in Memphis. Maybe your restaurant cooks traditional foods like burgers and BBQ for the 652,236 Memphis residents. 

No matter what’s on the menu, your patrons are ready to eat. You should be ready, too, by protecting your business with restaurant insurance. Whether you run a tiny coffeehouse or a big buffet franchise, you need a policy that covers every risk on the menu. Independent insurance agents will use their expertise to find the best coverage for your business so you can focus on serving up mouthwatering dishes.  

What’s Memphis Restaurant Insurance?

In basic terms, restaurant insurance is a combination of coverages that protects your employees, property, inventory, and diners. Each restaurant has a unique variety of risks, and your coverage can be customized to safeguard your business accordingly. 

Food for Thought: Memphis, TN 

• US restaurant industry sales are projected to reach $899 billion, up 4% over 2019
• Memphis residents working in accommodation and food services: 60,657
• Total of full-service Memphis restaurants: 556

Why Does My Memphis Restaurant Need Insurance?

Restaurant losses may not be on your menu, but unlucky events can still happen. Kitchen fires, sick patrons, and even more serious crimes can occur. Here are are a few of the things that could go wrong:

• Losing your stuff: Loss or damage of your inventory, equipment, or property. 
• Being sued: A customer finds glass in their dish and then you have to see the judge. Or a server feels you discriminated against them while they worked at your diner. 
• Making a mistake: Food poisoning caused by improper food preparation. Your mistakes and those of your staff can be covered. 

Unfortunate Events Do Happen in Memphis, TN

Restaurant insurance can help keep your business running even when there’s an unfortunate setback along the way. Damage and losses caused by weather events and criminals can occur. 

• Memphis (Shelby Co.) number of natural disasters is higher than the US average
• Shelby County’s most common weather events: floods, storms, and tornadoes
• Average US robberies per 1,000: 0.86
• Average Memphis, TN robberies per 1,000: 4.69
• Average US thefts per 1,000: 15.95
• Average Memphis, TN thefts per 1,000: 44.74

What Does Restaurant Insurance Cover?

Restaurant insurance is always a secret sauce of combined coverages. Here’s a list of ingredients that your insurance agent can mix together to protect your business:  

• General liability: Coverage if someone is hurt in your restaurant, including food poisoning. (Your independent insurance agent will make sure your policy doesn’t exclude communicable disease.)
• Liquor liability: If you sell liquor, this coverage kicks in if someone gets drunk at your restaurant and hurts themselves or someone else.
• Property: Coverage for your business’s physical assets, from buildings to decorations. It usually includes coverage for theft, fire, and natural disasters. 
• Spoilage: Coverage for any food inventory that spoils during a power outage or similar difficulty.
• Workers' compensation: This is required in the majority of US states. It’s coverage for your employees’ medical care and lost wages if they get injured while on the clock.
• Boiler and machinery (equipment breakdown): Coverage for your equipment under a wide variety of circumstances, including mechanical breakdowns or power outages. You can use the insurance payout for repair and replacement of important restaurant equipment. 
• Garagekeepers: If you have a valet service, this covers damage to patrons’ cars while using your parking service. 

What Kind of Restaurant Insurance Should I Get?

Restaurateurs who are launching their new venture may prefer to go with a standard restaurant insurance policy. This can be a great choice for coverage since it’s usually budget-friendly, convenient, and offers the best protection for the immediate future. 

Once your restaurant is more established, your independent agent can develop a customized insurance plan. This is particularly useful if you have invested in expensive appliances, catering vehicles, and furnishings. Some of the more basic, premade restaurant policies don’t have coverage for those extras. 

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How Much Does Memphis Restaurant Insurance Cost?

Restaurant insurance premiums depend on a variety of factors, like your sales and niche. The more revenue you generate, the more insurance will probably cost. You’ll also super-size your insurance costs when you add a side of liquor liability or garagekeepers coverage (for valet services). 

The bland version of this answer: 

• Small diners, food stands, food trucks: A few thousand dollars each year. 
• Large, five-star restaurants: Possibly $10,000 or more each year. 
• Chain (franchise) restaurants: Most costly premiums each year because of the high volume. 

Should I Talk to a Memphis Independent Insurance Agent?

Each restaurant has special risks based on things like its location, cuisine, staff, and sales. An independent insurance agent in Memphis can offer guidance while shopping around for the best, most affordable restaurant coverage for your food place.   

Reach out to an independent insurance agent with an office in or around Memphis, TN to learn more. You’ll soon discover how easy it can truly be to design a comprehensive, yet cost-effective, restaurant insurance policy.