The success of your bar, pub, casino, cocktail lounge or tavern depends on your reputation among the locals and your ability to take care of your customers while providing them with superior service and exceptional experiences to keep them coming back for more. Bars and pub faces a lot of risks. Your bar takes on risk every time a drink is served.
Other risks come in the form of a customer getting behind the wheel after having too many drinks, consumers slipping on the floor after the employee has mopped, and so on. As a bar owner, you have already invested your money and time into building the business and reputation, and now it’s time to ensure it is properly protected.
Business insurance covers costs from a wide variety of accidents such as customer injuries. If you run a bar, pub, or other similar establishments, it’s wise to have a bar insurance policy to protect your investment. In light of the hazards that threaten your bar business, it’s essential to have an open conversation with your insurance provider to understand how they can help protect your business against risks.
Have a look at some of the essential bar insurance options that bar owners must invest in to properly manage and keep everything from legal complications to public fights at bay.
Top 5 Must-Have Bar Insurance Policies
Anyone who owns a bar, nightclub, breweries, or any establishment that serves alcohol knows too well when it comes with inherent risks. One must strive to safeguard their business with proper insurance coverage.
Here are the top most essential bar insurance policies you need to invest in:
1. General Liability Insurance
Many states make investing in general liability compulsory, so it’s commonly the first choice of insurance coverage for bar businesses. A general liability insurance policy protects your bar and tavern business from bearing the full cost of damage to the property as a part of normal business operations.
Common risks like slips, falls, damage to the customer’s property, defamation, false advertising claims, and other minor incidents are all covered under this policy. This foundational coverage is excellent for alcohol-serving establishments to protect their businesses from basic risks.
2. Workers’ Compensation Insurance
Most states require the bar to have a workers’ compensation policy protecting employees from work-related injuries. Because of the legal requirement, it’s the second most popular insurance policy that a bar owner purchases.
The workers’ compensation policy covers your bar from injuries and minor accidents that your employees encounter as a part of normal business operations. Employees can benefit from this coverage by having some of their lost wages recovered along with having medical expenses covered for injuries that occur on the job.
3. Liquor Liability Insurance
Liquor liability insuance is vital for protecting bar businesses from bodily injuries and property damage caused by intoxicated persons served alcohol within the bar. Depending upon the laws within your state, your business may be liable for a lawsuit when an intoxicated person causes injuries to a third party.
It’s essential to be honest with your insurance agent regarding your bar business operations, the type of food and alcohol served, and the amount. Remember that failure to disclose what your business serves may result in a claim not being covered by the insurance company.
4. Commercial Property Insurance
Commercial property insurance is another coverage that bar owners must purchase. Commercial property insurance covers the building where your bar operations, personal property used in the business operations, or any other property involved in carrying out bar acts.
Many owners think of commercial property insurance as similar to a homeowner’s policy. But the fact is, it protects you from losses in case of physical damage to your property. Your property can be insured based on its actual cash value (ACV) or replacement cost.
5. Assault And Battery Coverage
When a patron sues your bar against an injury at your staff’s hand, they turn around and sue you for damages. When the customer brings a claim like this forward, the suit falls under the “intended or expected injury” exclusion.
Assault protection for the bar business is limited to claims arising from intoxicated patrons’ actions. It doesn’t extend to incidents caused by employees – and this is exactly where assault and battery insurance comes into play.
Find The Right Bar Insurance – MFE Insurance Brokerage
Like any other business, even taverns, pubs, and bars require insurance to run their business and protect their operations. From slips and falls to classic bar fights, businesses in this industry need to know exactly where they stand in terms of being protected against legal liabilities.
The bar insurance policy protects against a wide range of liabilities such as drunk driving car accidents, assaults, bodily injuries by intoxicated persons, food-borne illnesses caused by your bar, false advertising, burglary, civil commotion, and so on.
But at times, it isn’t enough to cover your bar establishment, and you need to get in touch with an experienced and qualified insurance company to find the right combination of coverage for your bar. This is where MFE Insurance Brokerage comes in handy – speak to one of our insurance agents who are well-versed in all policies and offer a wide range of coverage meeting your bar establishment’s needs.
Act now and protect your business quickly by reaching out to our best-in-class insurance agents – contact us today!