While your state and local governments may or may not require your establishment to have certain security systems, it’s almost a given that you can’t get good bar insurance without them.
Does your bar have a reliable system? Do you have camera coverage over the important areas of the building? Are you minimizing the risks of fires, burglaries, and liquor liability claims?
Whether the local ordinances require you to have a security system or not, you need to be aware of what your insurance policy requires. These cameras and alarms can protect you in certain situations, and they can help your insurance company handle everything when the unexpected occurs.
The insurance required for bars may be different in various locations. Some bars may be required to have a security system that meets standards set by Underwriters Laboratory, Inc. Others may even require that the company that installs and monitors the system is UL listed.
Let’s take a closer look at two important elements of a security system for a bar to make sure you’re meeting the necessary safety and insurance requirements.
Surveillance Cameras
As a bar owner, surveillance cameras are one of the most effective tools for preventing or settling liquor liability insurance claims.
Simply put, cameras and surveillance footage are an incredibly important part of your security system.
It’s not just about watching out for after-hours break-ins. It’s about gathering evidence that insurance companies will automatically want anytime there is some kind of claim.
You file a liquor liability claim, this is what you will be asked for.
Your bar insurance provider may require the footage right away, or it could be some time before the claim is settled. This means you need to make sure you know how long your security system holds onto footage before it is recorded over.
You will want to preserve this footage for at least three years (which is the statute of limitations in most cases) to make sure you are covered in any situation.
Alarm Systems
It’s possible to get insurance for bars at discounted premiums if you have a qualified alarm system. In other cases, you may be required to have an alarm system before you can insure your bar at all.
Alarm systems are important because they help manage some risks while reducing the potential for injuries or property loss.
Anything that reduces risk exposure can potentially reduce claims.
There are two types of alarm systems that a bar should have.
Fire: The alarms are likely required by your local fire codes, though the type of alarm you actually get will generally be up to you. However, depending on your exact policy, you may be required by the insurer to meet a certain standard with your fire alarm. For example, you may need to be connected to a 24-hour monitoring system rather than just rely on a couple smoke alarms in the hallways.
Burglar/Security: The insurer may want to know that there is always someone or some system watching your establishment and taking the right actions as soon as an incident starts happening.
In this case, though, it is possible that the bar insurance policy requires that the security system, and possibly the company that installs the system, is certified by Underwriters Laboratories, Inc.
This is often a requirement because the organization has long experience assessing companies for their ability to install and maintain security systems and provide the continual monitoring that bars need.
Your Responsibilities
Of course, these security systems are just the start. Getting the right insurance coverage for your bar will help you mitigate any issues that arise from fights, thefts, vandalism, and third-party lawsuits.
You should always take the time to discuss your options with agents who understand your industry. At Tabak Insurance Agency, we are ready to discuss all these elements with you and ensure you get the security systems that meet your needs and increase your potential for better policy rates.
Security systems are a critical part of protecting your business. They give us a reliable way to determine that you have done your part in meeting the relevant safety codes and gathering evidence in the case of an unexpected situation. Contact us today to learn more about your options.
