Owning a bar involves risks that are unique to the liquor industry due to strict regulations and the effects of alcohol. Bar insurance is a type of policy designed to protect businesses from the risks associated with the operation of pubs, taverns, and nightclubs. Here are some things to know about bar insurance:
1. Different Coverages Are Available
Depending on the situation and state regulations, a bar will need various aspects of its operation to be covered. Every bar establishment needs to stay compliant with liquor laws, which often require several types of liabilities to be covered. A bar insurance policy may include several coverage areas, including the following insurance types:
- General liability: This insurance covers most aspects of bar operation, including damages caused by you, your equipment, or one of your employees’ actions.
- Liquor liability: Some states require liquor liability, which protects servers. Certain states can hold a server liable if a person gets intoxicated at your establishment and causes harm to themselves or others.
- Workers’ compensation: Some states require workers’ compensation, and the nature of the bar industry may make this need greater. This insurance covers medical expenses when an employee is injured while working at your establishment.
- Property insurance: This type of insurance covers damage to your building, equipment, and inventory. Since bar needs vary, some individuals customize their property insurance policy to cover assets or damages that are more likely to occur.
2. Bar Insurance Is Customizable
Tabak Insurance provides policies customized to suit a business’s specific needs depending on the property and state requirements. Our agents can help your business develop a specific bar insurance coverage plan. The location, size, and business needs will determine what type of coverage is needed in each situation. Explain your business model and what assets need to be protected. Bars often need customized insurance to cover large equipment such as freezers, dispensers, and washers.
3. Insurance Can Protect Your Business
Lawsuits stemming from negligent service, alcohol-related altercations, accidents, or damage to your property can be detrimental to a bar operation if the business is not properly covered. A single major lawsuit may cost an uninsured business a fortune. This protection is especially needed for businesses involving liquor, where lawsuits may occur more frequently. Liability protections can serve as a safety net when problems arise.
4. Policies Can Cover Lost Income
Substantial income losses can accumulate when a bar closes for any reason. Business interruption insurance may help a business stay afloat during times when a bar shuts down due to perils covered in the plan. Otherwise, lost revenue, even for a short period of time, can add up quickly and impact bar operations. This may be useful in areas that are prone to specific disasters such as flooding or wildfires.
Explore Bar Insurance With Your Provider
If you plan to open a pub, tavern, or nightclub, ask an insurance agent which insurance policy is right. Bar insurance can protect your property assets, employees, and reputation in the event of mishaps. Most states require certain liabilities to be covered, and an agent knows the regional requirements. Contact a representative at Tabak Insurance to learn more about ways to protect your bar operation, what state laws require, and which policies you’ll need.
