When it comes to owning and managing a bar, it’s best not to gamble with gaps in your insurance coverage. Even experienced bar owners are often surprised by what isn’t covered after a claim is filed. Insurance can be a tricky world to navigate and there is the fear of being over-insured and paying too hefty of premiums. To help, we’ve provided this guide on insurance coverage every bar owner should double-check.
Liquor Liability Coverage
Topping our list of bar insurance coverage is liquor liability coverage. Most owners will tell you that this is a must when it comes to bar insurance coverage. This policy will protect you from potential liability issues if a customer becomes intoxicated and causes injury or property damage. Many states require this by law, but even if your state does not, this policy is considered a must when it comes to surviving in today’s hospitality industry.
Business Interruption Insurance
Next up on our bar insurance coverage “must haves” is business interruption insurance. This will protect you from unexpected events such as a fire, a natural disaster or even utility outages. If your business is interrupted to the point that you cannot cover ongoing expenses such as rent and payroll, then this policy will protect you from those potentially deep losses.
Workers’ Compensation
Workers’ compensation is important in many industries and is a given when it comes to necessary bar insurance coverage. In fact, it’s typically required by law. This policy will cover medical expenses and even lost wages if an employee is injured at your place of business. A slippery floor and a heavy keg can cause very real problems, so be sure that your workers’ compensation policy is up to date and has suitable coverage at all times.
Property Insurance
Make your assets a priority with property insurance. Furniture and equipment as well as inventory and the actual building itself should be protected. Be sure to have an inclusive policy that shields you from fire, theft and other potential risks. This type of bar insurance coverage will help you to recover the cost of damages or loss so that your business downtime is minimized.
Assault and Battery Coverage
In the bar business, this is a very real concern. What happens if a fight or a brawl breaks out between unruly customers? You may be held liable for the damages to your own property and even the resulting injuries. Standard hospitality liability insurance will not cover assault and battery claims.
General Liability Insurance
In addition to the above, you’ll want your business to be covered with a general liability policy. This will protect you from accidents that may occur such as slips, trips or falls. This will also protect you from third-party property damage and personal injury claims.
Bar ownership presents a considerable list of challenges and liabilities. One way to scale back on these vulnerabilities is to make sure that your staff is properly trained and certified. Here at American Course Academy, we can get your staff certified quickly and affordably. View our list of supported states and get enrolled in alcohol sales and server training in minutes.
