Your bar’s success can depend on your ability to provide patrons with exceptional service to keep them returning. Dealing with intoxicated customers increases the risks your business faces in operation. Insurance for bars can help protect your venture from liability in case of accidents, preventing financial loss. Here are the different types of bar insurance coverage you may need for your business:
General Liability Insurance
Your business is liable for incidents like slips and falls or damage to a customer’s property that may happen within your establishment. If you are sued, your business can lose money covering the total cost of property damage or handling medical expenses for injuries sustained. General liability insurance shields your business from financial loss if such incidents occur.
General liability insurance is a legal requirement for all businesses, so having adequate coverage allows you to abide by the law. This insurance type shields your business from claims that relate to the following:
- Property damage: Your general liability insurance policy will cover claims of third-party property damage that may have happened within your institution. This coverage also protects your business with rental property damage claims.
- Bodily injury: Incidents like slips and falls can cause bodily harm, so your insurance can cover all related medical charges.
- Reputational risk: General liability insurance can protect your business against claims of libel, slander, privacy violations, and malicious prosecution.
- False advertising: Copyright infringement claims can lead to high settlements, causing significant financial loss. General liability insurance can offset such risk by covering the claims.
Liquor Liability Insurance
Liquor liability insurance is among the legal requirements for setting up an establishment manufacturing or serving alcohol. Insurance for bars can also protect establishments like nightclubs and wineries from alcohol-related claims. Common claims your liquor liability insurance coverage can protect your business include:
- Sexual assault and harassment: Drunk customers who harass others sexually can cause your establishment to be sued. Liquor liability insurance will handle sexual assault claims.
- Physical injuries from fights: Inebriated guests may get into fights that result in injuries. Your liquor liability insurance will cover medical bills related to the incident and prevent financial loss to your business.
- Drunk driving: Your business might be liable if patrons are served alcohol when visibly intoxicated and cause accidents when driving off. Liquor liability insurance can help cover repair costs for property accidents and legal fees if the case goes to court.
Liquor liability insurance does not cover damage to the business’s property or claims involving underage drinking.
Workers Compensation Insurance
Your employees face numerous risks while conducting work-related activities. Risks can range from standard slip and fall injuries to injuries from handling appliances and equipment. Dealing with intoxicated clients can also expose them to harm. Obtaining worker’s compensation insurance is a legal requirement for your bar.
Worker’s compensation insurance helps protect employees from such risks and prevents financial loss to your business. The cover will cater to medical expenses for injured employees, like emergency medical attention charges and hospitalization fees. Other expenses include disability pay to help employees meet personal financial obligations as they recover. In case of a personal injury lawsuit, the insurance coverage will handle all legal fees and settle the compensation amount on behalf of your business.
Commercial Property Insurance
Disaster strikes like storms, fires, floods, or theft can ravage your business premises. Property damage interrupts business operations, resulting in a substantial financial loss. Such losses can cause bankruptcy or drive you out of business. Commercial property insurance coverage helps manage losses from property damage and business interruption.
Depending on the commercial property insurance you purchase, your insurer can cover various losses, including:
- Accidents: Incidents like fires that destroy business property can be covered under commercial property insurance if they do not stem from employee error.
- Natural disasters: Storms and floods may damage business property and interrupt business operations. Commercial property insurance will cover any losses attributed to repair and business interruption.
- Equipment breakdown: Bar equipment like fridges, freezers, or ovens can break down or malfunction. Your cover will handle losses resulting from malfunctioning equipment, including lost sales.
- Criminal activities: Theft and riots can destroy your business property and inventory. Commercial property insurance can help prevent losses from devastating human acts.
Get Insurance for Bars
Bar owners focus on giving patrons a memorable experience but face numerous risks that can cause financial loss. Insurance for bars protects your business against financial loss from numerous perils. Work with a reputable insurer for adequate coverage to protect your business.