There are several unique risks that bar owners face when they run their business. While restaurants and nightclubs do have to deal with many of the same situations, it’s always going to be a little different for a bar or pub.
Some insurance is required for bars, and other types of coverages are just good ideas. It’s important that you get the right bar insurance without paying too much so you can mitigate all those potential risks while staying rigidly within a budget.
On top of all that, most bar business insurance plans are claims-made policies instead of occurrence polices, which means an owner has to know what is covered and when a claim can be made.
So, let’s take a look at your options to make sure you can always choose the right bar insurance for your needs.
Liquor Liability Insurance
This is likely the most important coverage for any bar, and it is the one that many states require bar owners to carry.
Basically, any establishment that serves alcohol to the public could be held liable for the actions of any intoxicated patrons. This responsibility could hold true even for their actions after they’ve left your bar.
Liquor liability insurance can cover a number of intoxication-related claims, including slips and falls, drunk driving, assaults on fellow customers, and other similar situations.
It should be noted, though, that liquor liability may not cover damage to your property. It can cover the damage done to other properties, but your own establishment will need a different kind of coverage. (We’ll get into that in a minute.)
This is a specialized type of coverage that every bar, tavern, and pub needs (whether it’s state-required or not). Choosing the right bar insurance starts right here, because this is what will cover your business when the unexpected occurs.
Commercial Property Insurance
Most business owners assume this type of coverage is only for natural disaster or some kind of major property destruction. However, if an intoxicated patron manages to destroy a few small things – but nevertheless important things – on your premises, you need to make sure you’re covered.
Property insurance for bars usually comes in two types (named perils or open perils) and should insure your building and your business property (the tables, chairs, etc.). You may even get special coverages for certain things that are critical to your bar and your brand.
General Liability Insurance
When your liquor liability doesn’t cover something, there’s a good chance that you can rely on general liability to have your back.
In general, this type of coverage is meant to protect you against third-party claims when someone gets hurt, or their property is damaged, or they dispute your advertising claims, and other similar situations. The legal expenses can build up quickly if you’re not prepared, so be sure that you have a general policy that covers a wide range of potential risks.
What Variables Impact Bar Insurance Costs?
There are many different factors that could impact the insurance rates for your bar. Some of them may not make a huge difference, but it’s important to understand what they are to make sure you are getting the right coverage. Some (but not all) of the most common variables include:
- The size of the bar. How much space do you have in the seating area and behind the bar?
- The number of people who work for you. How many people are you responsible for?
- The location. Is there a history of problems in your area? Is it a college area prone to younger patrons?
- They type of bar. What products do you serve in the bar?
- Your personal claims history. Have you made several insurance claims in the past?
- Your experience. How long have you owned/managed a bar?
At Tabak Insurance Agency, we’re here to support you through the entire process of finding the right insurance for bars. There are always risks when you run any business, so get in touch with one of our agents to learn more.