Anyone who owns a bar, taverns, night club—or any establishment that serves alcohol—knows that it comes with inherent risks. Inebriated customers pose the greatest risk, so you must strive to protect your business with the proper insurance coverage. So what coverage do you need? What does bar insurance cover? How much does it cost? Read this handy guide for more information on business insurance for your bar.
Who Needs Bar Insurance?
- Night Clubs
- Cocktail lounge
Putting a good insurance policy in place will reduce stress and worry down the road, and it will allow you to focus on the operation of your pub. So what insurance policies should you consider?
Commercial Property Insurance for Your Bar
Some property insurance policies include below coverages, while others are optional endorsements. But these are some things you need to consider to protect your business if property damage occurs:
- Building coverage: Property insurance covers the cost of repair or replacement of your bar in the case of property damage by fire, severe weather, theft, and vandalism. Check with your insurance to see if there are any exclusions (i.e. flood insurance needs to be purchased separately).
- Contents coverage: You have many assets to protect in your bar—expensive alcohol, tables & barstools, signs, and more. Make sure your coverage limits are enough to cover the costs of replacing these items.
- Equipment breakdown coverage: If a power surge or electrical malfunction damages the refrigerators, A/C, boilers, furnace, etc. in your bar, this policy steps in to replace and/or repair the damaged equipment.
- Food Spoilage: If an electrical surge causes your bar to lose power in your kitchen, the contents of your fridges and coolers may spoil. This policy option helps cover the cost of replacing the spoiled goods.
Liquor Liability Insurance is Imperative
If alcohol is served in your business, liquor liability insurance is a necessity. This insurance will protect you and your bar if a customer gets intoxicated and causes injury to themselves or others or damages property. Liquor liability insurance also extends to drunk driving accidents, assault and battery, accusations of sexual assault, and costs associated. What is excluded from liquor liability insurance? Serving alcohol to underage kids, slander and libel, and damage to your property. If you let your liquor license expire, liquor liability coverage is null and avoid.
What Other Insurance Coverage Do I Need for my Bar?
An appropriate insurance policy for a bar needs to provide coverage for a variety of risks. It should cover employees, equipment, buildings, liquor liability, general liability, loss of income, and more
- General Liability Insurance: Also called “Slip and Fall” coverage, general liability coverage is essential for any business—including your bar. It helps cover costs associated with medical expenses and legal fees if a customer is injured or their property is damaged on your premises.
- Business Owners Policy: A business owners policy is typically a combination of general liability insurance and property insurance at a discounted rate—usually extended to small businesses.
- Product Liability Insurance: Most bars serve food alongside alcohol which brings inherent risk. If a customer becomes ill after eating your food, they can sue you to cover their medical expenses and lost wages. Product liability helps cover those costs.
- Workers’ Compensation Insurance: Additionally, your bar insurance should include workers’ compensation insurance in case an employee is injured or becomes ill on the job.
- Business Interruption Insurance: In the case your business is temporarily shut down due to damage to the building or an electrical breakdown this insurance helps cover lost wages.
- Assault and Battery Coverage: Many bars hire bouncers or security guards as a measure to prevent fights/assaults on your premise. If a fight does break out, you can be held liable—so make sure you are properly covered.
How Much Does Bar Insurance Cost?
There are a number of coverage options with varying limits and deductibles. Other variables that impact cost include:
- Location of your bar/pub
- What you serve at your bar
- How long you’ve been in business
- Number of employees at your bar
- The value of your property
General liability alone for a bar can cost between $70 and $120 a month (average)/ Various insurance companies charge between $3,000-$5,000 annually for comprehensive coverage. Make a note to talk to your licensed insurance professional to review what you need.
Get a FREE Bar Insurance Quote
So get a free business insurance quote for your bar or pub, give us a call or complete the form at the top of the page. One of our agents will connect with you to go over quotes and help you find the right insurance coverage for your bar.