How Do I Insure Myself as a Bartender? A Guide to the Insurance Required for Bars

Anyone who serves alcohol takes on some risk. A customer may get hurt, a guest may drive home after one drink too many or a spilled glass may ruin someone’s phone. Whether you tend bar for someone else\ or own an establishment, you need to know who’s covered when something goes wrong. Understanding the insurance required for bars, and the coverage that makes sense beyond the legal minimum, is the first step.

Understand the Risks

There are risks related to serving alcohol to customers, so it’s beneficial to take some precautions to protect the well-being of both patrons and bartenders. While bartending, you’ll interact with individuals who have varied reactions to intoxication. Occasionally, some customers may become unruly, and incidents may happen. Servers and bartenders play a significant role in helping customers enjoy their drinks responsibly, which creates a safer environment.

Working with an insurance provider that specializes in the hospitality industry helps you create a custom policy that protects employees’ livelihoods, medical bills, and reputation if an alcohol-related incident occurs. Find a company that understands the unique requirements associated with running a bar for help navigating liquor liability laws and understanding how insurance can help. Tabak Insurance offers different types of bar and restaurant coverage that address your business’s specific needs and risks.

Employee vs. Independent Bartender

If you work as a bartender for a bar or restaurant, you’re generally covered under your employer’s general liability policy for work you do on the job. Current general liability forms automatically include employees as insureds. If you bartend on your own, such as at weddings, private parties or corporate events, your employer’s policy won’t cover that work. In that case, you’ll need a policy in your own business name.

Coverage That May Be Required by Law

Legal requirements vary by state, and some states require specific coverages before a bar can operate. Most states require workers’ compensation once you have employees. Some also require liquor liability coverage as a condition of the liquor license. Other states have different financial requirements. In Texas, for example, retailers that don’t hold a Food and Beverage Certificate from the Texas Alcoholic Beverage Commission must file a conduct surety bond to get their license or permit. The bond amount is higher for businesses located near a public school. Your Tabak Insurance agent can tell you what you need to stay compliant.

Coverage That May Be Required by Contract

Even when the law doesn’t require a certain coverage, the people you do business with often will. Landlords, event venues and lenders commonly ask for proof of insurance before you sign a lease, work an event or close on a loan. They may also ask to be named as an additional insured, which adds them to your policy so they can make a claim under it if they’re pulled into a lawsuit related to your work. Read these requirements carefully so your policy matches what the contract asks for.

Types of Insurance Bartenders and Bar Owners May Need

Once you know your risks and requirements, you can choose the coverage that fits. These are the most common policies for bars and bartending businesses.

General Liability Insurance

General liability covers claims from customers and other people outside your business. If a guest slips on a wet floor, or a spilled drink damages a customer’s phone, general liability can help pay for medical bills, repairs and legal fees. It doesn’t cover injuries to you or your employees.

Liquor Liability Insurance

Liquor liability protects your business if an intoxicated customer injures someone or damages property after drinking at your bar or event. General liability excludes these claims for businesses that serve alcohol, so liquor liability is worth carrying even in states that don’t require it.

Workers’ Compensation Insurance

If you employ bartenders or other staff, you may be legally required to carry workers’ compensation. It pays for medical bills and lost wages when an employee is hurt on the job.

Commercial Property Insurance

Commercial property insurance protects your equipment, furniture and inventory from fire, theft and other damage. Even if you rent your space, it can cover the items you own inside it. Coverage can be adjusted based on your location and the type of building you’re in.

What To Check Before You Buy

Read the terms and conditions of any policy before you sign. Check what’s covered and what’s excluded, ask questions, and request changes if something doesn’t fit. Also ask whether your coverage can grow with your business. If you start as a catering bartender and later open a physical bar, your insurance needs will change. Review your coverage whenever you’re planning a major change or investment.

Insurance for Bars and Bartending Businesses

Tabak Insurance Agency works only with hospitality businesses, including bars, nightclubs, caterers, food trucks and mobile bars. We know the requirements these businesses face, and we help you choose and combine coverages so you meet them without paying for protection you don’t need. Contact us or fill out our online questionnaire to get a quote, or call 800-806-0689.

Frequently Asked Questions

Do I need my own insurance if I work as a bartender at a bar?

Usually not for the work you do there. Current general liability policies automatically include employees as insureds, so your employer’s policy generally covers you while you’re on the job. That coverage doesn’t follow you to side work. If you bartend private events on your own, you’ll need your own policy.

What’s the difference between a certificate of insurance and being an additional insured?

A certificate of insurance is a document that shows you have coverage. It doesn’t give anyone coverage by itself. Being named as an additional insured is different: it adds the other party to your policy so they can make a claim under it. A venue may ask for both, so make sure your policy includes the additional insured status the contract requires.

Do I need business auto insurance for a mobile bar?

If you use a vehicle for your business, such as hauling a mobile bar setup or driving a food truck, general liability won’t cover accidents involving that vehicle. General liability policies exclude claims that come from using an auto, so you’ll need a separate business auto policy.

Does a venue’s insurance cover me when I bartend an event there?

You shouldn’t count on it. The venue’s policy is written to protect the venue. Many venues require outside bartenders and caterers to carry their own general liability and liquor liability coverage and to show a certificate of insurance before the event. Check the venue’s requirements early, so you have time to get coverage in place.