As the owner or operator of a bar or tavern, you’re responsible for the well-being of your patrons and employees, the safety of your premises, and the protection of your assets. Even with the best-organized bars, accidents happen, and risks are present. The financial and legal impact can be devastating without insurance for bars.
The best strategy to avoid a devastating financial event is to have bar insurance. This article will cover some of the best reasons you should have insurance and the different types of situations it can cover.
Reasons Your Bar Needs Insurance
1. Protect Your Business From Property Damage
As a bar owner, you may have a lot of valuable assets to protect. From the building to the furniture and equipment inside, you need to have everything insured in case of damage or loss. If a fire in your bar damages the building and its contents, you could be facing a huge financial loss without insurance. This type of coverage is called property insurance. It covers losses caused by things like fire, theft, or natural disasters.
Many types of damage are also caused by patrons. When dealing with alcohol, you risk dealing with drunk customers who are not thinking clearly. Fights can break out between customers, parties can be rowdy, and other patrons might just have a random accident. Having insurance to protect your establishment from costly repairs is a great way to protect your assets.
2. Cover Liability Claims
If someone gets drunk in your bar and then gets into a car accident, they could sue you for serving them too much alcohol. If someone slips and falls on a wet floor, they could sue you for their injury. Liability insurance is designed to protect you and your business from these types of claims. It covers bodily injury, property damage, and personal injury, such as defamation or false arrest.
3. Protect Your Employees
Employees may slip and fall on a wet floor, get injured lifting heavy objects, or even face harassment from customers. Business insurance can provide financial support in case of workplace accidents, disability, or any other unforeseen incident, protecting your employees and your business.
Some insurance policies require insurance to protect employees because of various state laws requiring it. While employees will receive trainings on when to stop serving alcohol, there are still lawsuits that can pursue compensation from bars when patrons become too drunk and cause damage or injury outside of the restaurant or tavern.
4. Protect Your Customers
Bars and nightclubs can quickly become crowded, especially on weekends and holidays. Guests may trip on the dance floor, fall down stairs, or become involved in a fight. A single incident can cost your business thousands of dollars in medical bills, legal fees, and compensation claims. Liability insurance covers any injury or damages on your property, protecting your business and customers.
5. Required by Law
Bar owners should have an insurance policy meeting all their legal requirements. Not only is it mandatory in many states to carry liability insurance, but it also protects your staff and customers. Liability insurance can protect your bar from legal and financial disaster in an accident or injury.
Some states may require other types of insurance. Knowing what type of insurance coverage is required for the type of alcohol you serve, places you do business, and more can help you stay clear of fees and fines.
6. Cover Business Interruption
If your bar has to shut down for any reason, it can be a massive hit to your bottom line. Business interruption coverage can help cover the costs of lost income, rent, or mortgage payments. Most policies may cover losses due to natural disasters, fires, and other unforeseen circumstances.
Many businesses cannot recover financially when interruptions happen. Knowing that you have coverage to keep your business afloat is top of mind since the recent government shutdowns in 2020. Having a backup plan is the best way to protect your business from going bankrupt when something unexpected happens.
7. Protect Against Cyber Threats
Bars, restaurants, and other small businesses are also frequent targets of cyber attacks. Insurance for bars can help you recover from data breaches, hacking attempts, and other cyber threats. If something like that happens, you can get help to recover any losses. Some insurance plans will help provide additional coverage to prevent cyber threats from happening in the first place.
How To Reduce Insurance Costs for Your Bar
1. Review Your Insurance Policy
Regularly analyzing your policy can help confirm that every coverage aspect aligns with your business needs. This means looking closely at the coverage limits, deductibles, and exclusions. Understand each detail of your policy, as it can help accurately evaluate your business risks and tailor your policy to suit those risks.
2. Bundle Policies
Insurance companies may offer discounts for bundling policies. This means you can get several insurance policies at a lower rate than if you purchased each separately. If you have a bar that backs onto a restaurant, you may be able to bundle that policy with the bar’s liability insurance and get a lower premium. Talk to your insurance agent to find out what bundled policies they offer that can save you money.
3. Implement Safety Measures
Safety features such as surveillance cameras, alarm systems, and sprinkler systems can help mitigate risks. By reducing the likelihood of accidents or theft, your insurance provider considers your business a lower risk, which can result in lower premiums each month. Insurance companies appreciate when businesses do all they can to prevent damage in the first place.
Get Insurance for Bars Today
Running a bar or nightclub involves inherent risks; no business is immune to accidents. The right business insurance policy can give you peace of mind and protect your business in unforeseen circumstances.
Find an insurance provider that understands your business and provides tailored coverage to meet your needs. By taking proper precautions and investing in insurance for bars, you can protect your employees, customers, and reputation and focus on running a successful business.