Insurance coverage is a structured way to manage specific, well-defined risks. At a bar or restaurant, this includes coverage for property assets, intoxicated patrons, and more. The Tabak Insurance team supports the food service industry, and we assist with bar and liability insurance. Here is some information about liquor liability insurance and other policies your bar business may need:
Liquor Liability Insurance
Liquor liability insurance addresses risks associated with serving, selling, or providing alcohol. If a patron becomes intoxicated and damages a patron’s property, the bar may be held legally responsible under dram shop laws. These claims typically involve medical expenses, legal defense costs, and court-awarded damages. State or local regulations often require this type of coverage, so businesses that sell or serve alcohol must remain compliant.
Proper insurance helps avoid large financial losses from liability claims. Business owners can also mitigate liability claims by training employees to refuse service to patrons who are visibly intoxicated or underage. At Tabak Insurance, our team supports bars and restaurants with insurance packages, and we’ve helped them save an average of 20% on their premiums.
General Liability Insurance
General liability insurance addresses everyday exposures that occur on business premises. Slips, falls, accidental property damage, and certain advertising-related claims fall under general liability coverage. These risks are present during normal operations, and they can occur regardless of alcohol service. This type of insurance covers third-party bodily injury and property damage claims that arise from routine business activities. A customer may be injured due to a wet floor or damaged furniture, and general liability insurance applies to these types of claims. Other incidents include damage to the property your business rents from a third party.
Commercial Liability Insurance
Commercial liability insurance is often used as a broad term that encompasses multiple liability coverages, such as those for natural disasters, equipment breakdown, or spoliation. This insurance helps cover the cost of property damage from floods or hurricanes if disasters devastate a business. Some policies also cover criminal activity, such as the cost of replacing windows damaged by vandalism.
Commercial insurance policies cover various parts of bars and restaurants, like the building itself and inventory. Property insurance covers reconstruction costs if the building is damaged. The policy may also include items purchased by the business, such as chairs, kitchen equipment, or cash registers.
Errors and Omissions Insurance
Errors and omissions (E&O) insurance covers claims related to professional mistakes, misrepresentations, or failure to perform services as promised. It also includes claims of negligent practices or inaccurate professional advice. Some situations that would be covered would be if an IT company suffers a data breach and fails to protect client information, or if an investor takes bad advice from a stockbroker.
This type of insurance applies when a business provides professional advice or services that result in a client’s financial loss. For bars that offer event hosting, private bookings, or contractual services, E&O coverage may be relevant if disputes arise over service delivery or administrative errors. This type of insurance helps protect a business from any misrepresented or unfair business deals.
Using E&O complements other insurance policies by addressing risks that stem from business decisions. This tailors insurance coverage to the specific structure and services of your bar business. At Tabak Insurance, our team offers customized insurance policies that fit your business’s needs.
Use Bar Insurance Today
Combining general liability, commercial liability, and errors and omissions insurance helps form a framework for how bars operate. It protects your business from various risk factors and provides coverage and policy options. At Tabak Insurance, our team offers solutions that align with regulatory requirements and operational realities. Contact our team today to learn more about our insurance options and policies.
