Naturally everyone thinks about liquor liability when it comes to bar insurance, but you’re going to need coverage for many different areas of concern as well. For example, you’ll have employees to protect and property that needs to be insured in order to replace or repair damage to the building and fixtures, not to mention any operational equipment that might break down. You might want to start with an estimate of what the value of the property is and go from there.
If you’re bar is going to involve games and activities, like dart boards, a pool table, karaoke and the like, your premiums will probably be higher to insure all of those areas of risk. For bars with extravagant themes, such as those that include having pyrotechnic displays, swimming pools, or staged musical events featuring live bands, these things will certainly heighten the risk factor, creating additional exposures to be dealt with.
Alcohol Concerns Play An Important Role
Serving alcohol creates a great revenue stream but can come at a cost. For example, each state has its own laws regarding what is the liability of the bar owner for injuries to a third-party caused by an intoxicated patron. Alcohol ranks highest on the list of liability issues, plus a liquor license can be pretty expensive. Not everyone is eligible to receive this license and you’re going to have to fit certain criteria to even get a permit. You must keep track of the percentage of sales attributed to alcohol since it helps insurers determine what rates will apply as this will factor into your bar insurance coverage.
To properly run a bar you’re going to need employees to work there, so you’ll need workers’ compensation insurance and health insurance benefits in order to retain staff. In most instances part of your staff will include bouncers or security to maintain order and protect patrons so you’ll also need liability coverage to sufficiently deal with lawsuits if they are charged with causing injuries to people while they are in your establishment.
You’ll also want to look into coverage for any vehicles used for commercial purposes, particularly those not covered by personal auto policies. You may require hired/non-owned insurance to cover employees who use their own vehicles for work purposes. A lot of thought must go into your bar insurance package and the many policies and riders you may need to run a successful venture.