Published On: October 11, 2021

Many business owners find it challenging enough to get the right restaurant and bar insurance just based on the risk factors that are directly related to their location and activities.

Most of us never think that we have to consider how other world events taking place somewhere out there might affect our insurance rates.

However, there are some instances in which these events could have a direct impact on your premiums.

It may be hard to imagine, but is it possible that the wildfires in California are going to increase your rates? Could the hurricanes and flooding on the other side of the country be costing you money?

It’s doesn’t seem like it should, but these things tell the insurance industry that certain types of risks are increasing. So, even though no one likes it, it’s important for business owners to understand what is happening in the world and what it means for your bar or restaurant insurance.

The thing is: it’s all about risk.

World events could lead to physical or liability risks, and that is something that an insurance provider has to consider. And when they do, coverage availability and underwriting assumptions and more could change.

So, let’s take a look at three different types of world events that could have an impact on your restaurant or bar business insurance.

Natural Disasters

Natural disasters and other catastrophic events can happen at any time and to anyone. Businesses rely on their commercial property insurance and other types of coverage to get back up and running as soon as possible. This, of course, costs insurance companies a lot of money, which means that they have to consider how they are going to deal with these types of issues and mitigate them in the future.

If you live in an area that is prone to earthquakes or hurricanes, you could see your rates reflect that. At the same time, the occurrence of a natural disaster elsewhere in the country may simply highlight the overall risk for providers.

Civil Disorder

It’s not always a natural event that highlights potential risks. In recent years, the increase of civil disorder throughout the country led to a lot of insurance claims as bars and restaurants tried to get everything up and running again.

Dealing with this kind of loss can be difficult, and it can certainly affect insurance rates.


Because the civil disorder catastrophe event(s) of 2020 exceeded 2 billion dollars in losses to the insurance industry.

It’s a terrible thing, no matter how you look at it, but that means that the insurance industry is going to re-evaluate risk exposure where these events happened in the past and apply the thinking to the future.

This doesn’t mean that every business is going to experience increased rates because of these occurrences. In fact, 2020 made it more apparent that it’s the larger retailers that incurred the most losses. This could imply that larger establishments are more vulnerable (and more of a risk) when this type of event happens, so the size or your business would also be relevant to your risk assessment.

The Pandemic

Of course, any discussion of catastrophic world events wouldn’t be complete without an understanding of how COVID is changing the insurance industry.

Unemployment insurance, health insurance, and other relevant coverages were impacted by the world health crisis. This was an unprecedented event in our history, and it brought a lot of things to the forefront of the insurance industry.

Even now, there are employee shortages in many restaurants and bars around the country, and everyone is struggling to figure out how to make things work in the “new normal.”

This has stressed the insurance industry in ways that no one could have predicted, and it is leading to potential premium increases or dropping entire lines of coverage if they’re deemed unprofitable.

Getting the Right Insurance for Bars and Restaurants Despite World Events

Like it or not, world events can affect your insurance rates.

But that doesn’t mean you don’t have options to manage your rates while still getting all the coverage you need.

It simply means you need to work with an agency that understands your needs for insurance in the hospitality industry. At Tabak Insurance Agency, our specialists will make sure that you understand every factor that could impact your rates and help you make the best decisions for your business.

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