Published On: July 11, 2023

Obtaining insurance coverage can help to protect your establishment, employees, and customers. Understanding the average insurance for bars can help you with budgeting and determining which plan is best for you. At Tabak Insurance, we can help you understand what insurance you need for your bar. Here is what you should know about insurance costs for bars: 

Different Coverage Options

Each bar has different needs, and insurance for bars may vary based on those needs. For those who own a restaurant and also serve alcohol, you may need both general liability and liquor liability. Bars that are also clubs may need more extensive forms of insurance as well. At Tabak Insurance, we can help you pick and choose which coverages you will need to make sure you, your employees, and your customers are protected. Here are a few general insurances your bar may need: 

General Liability Insurance

General liability insurance is a base coverage for bars. It protects against claims for bodily injury, property damage, and personal injury that may occur on your premises. The average cost of general liability insurance for bars can vary based on several factors, including the size of the bar, location, sales volume, and history of claims. The typical cost ranges from $200 to $1,000 per year.

Liquor Liability Insurance

Because bars serve alcoholic beverages, liquor liability insurance is required. This coverage protects against claims related to alcohol-induced incidents, such as fights, injuries, or accidents caused by intoxicated customers. The cost of liquor liability insurance is typically influenced by factors like the bar’s sales volume, the state’s alcohol laws, and the bar’s safety measures. You can expect to pay between $900 to $1,200 per year.

Property Insurance

Property insurance is used to protect your bar’s physical assets, including the building, furniture, fixtures, equipment, and inventory. The average cost of property insurance depends on items such as the location of the bar, the value of the assets, and any additional coverage required, such as coverage against natural disasters. Property insurance can also depend on your area’s crime rate and location approximate to a fire station. These policies range from $500 to $500,000 a year.

Workers Compensation Insurance 

Workers’ compensation insurance is typically mandatory if you have employees working in your bar. It provides coverage for medical expenses and lost wages if an employee is injured on the job. The cost of workers’ compensation insurance depends on various factors, such as the number of employees, the nature of the work, and the past claims history.

Factors to Consider

The cost of your insurance for your bar can be determined by several different factors. Here are some of the factors you should consider: 


The geographic location of your bar plays a significant role in determining insurance costs. Factors such as the crime rate in the area, proximity to high-risk establishments, and the overall safety of the neighborhood can impact insurance premiums. Keep this in mind as you choose the location of your bar. 


The size and capacity of your bar, including the number of customers it can accommodate, can affect insurance costs. Larger bars with higher occupancy may have a higher risk of accidents, injuries, and property damage, leading to higher premiums.


If your bar offers live entertainment, like bands or DJs, or if you participate in high-risk activities like hosting special events or sports screenings, the insurance premium may be in a higher range. This is because you may have an increased potential for accidents or property damage.


You can reduce insurance costs by adding safety measures to your bar. Some safety measures include security cameras, fire prevention systems, well-trained staff, and proper maintenance of the bar. Insurance companies may view bars that show a commitment to safety and risk management more favorably.


The amount of coverage you purchase as the bar owner, such as liability limits, property coverage, and additional endorsements, can impact the insurance costs. Higher coverage limits or lower deductibles typically lead to higher premiums. Keep this in mind as you make goals for the coverage on your bar. 


Insurance providers look at your bar’s claims history and experience. Bars with a history of previous claims or legal disputes may face higher insurance costs, as they are considered higher risk. Bars with fewer claims may see lower insurance costs. 

Insurance for Bars and Restaurants

The average insurance costs for bars can vary depending on factors such as size, location, safety measures, past claims, etc. At Tabak Insurance, we can help customize your insurance plans so that you, your employees, and your customers at the bar are properly covered. We first look at your business model and evaluate what plans would suit your bar’s needs best. Contact Tabak Insurance today to learn more about our comprehensive insurance for bars. 

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