Due to the nature of their operations, nightclubs are prone to third-party liability claims stemming from accidents and injuries. Moreover, if third-party property damage or injuries occur at your nightclub, the authorities will likely hold you liable. Take note that third-party liability claims can potentially plunge your nightclub business into financial ruin, as well as cause you to lose your personal assets and savings. With this in mind, ensure you carry the right adult nightclub insurance to protect your employees and customers. Here’s some more information on this topic:
Types of Insurance That Adult Clubs Need
Considering the high risk that comes with running a nightclub, ensure you protect your business with the right insurance coverage. That said, here is a look at a few insurance coverages that may come in handy.
General Liability
According to the International Risk Management Institute (IRMI), commercial general liability is an insurance policy that protects your business against liability claims that may result if your business causes bodily injury or property damage to others. For instance, if a customer at your club loses stability due to insobriety, falling, and hitting his head on the concrete floor, he may sue you for the resulting injuries. The right general liability insurance will cover the costs involved. Take note that this policy also covers employees from injuries, falls, and other accidents involving food and beverages.
Dancing and Drinking
Although the idea of exotic dancers being considered independent contractors is somewhat controversial, an accident involving a dancer in your nightclub will directly affect your business. Such dancers, and other club occupants, can be vulnerable to falls and other incidents that involve eating and drinking. It is worth noting that the right adult nightclub insurance is paramount, especially if your business serves alcoholic drinks. While not every injured dancer may ask for compensation or sue you, such incidents can damage your reputation and make you lose customers.
Tips to Minimize Injuries in Your Adult Nightclub
While the right insurance coverage can protect your business, you should first mitigate the potential risks for even lower insurance premiums. Common causes of nightclub injuries include, among others, intoxication, inadequate security, obstacles in walkways, poor lighting, overcrowding, allowing customers to enter with dangerous weapons, and blocking emergency exits. These situations cause customers and employees to sustain injuries such as cuts, bruises, lodged bullets, fractured bones, back and neck injuries, and head trauma. Some of the measures you can take to minimize injuries in your nightclub include:
- Observing the federal safety code provisions for nightclubs
- Hiring professional bouncers that understand how to contain dangerous situations safely
- Providing sufficient lighting and security
- Denying already intoxicated people entry to your club
- Training your employees on how to tell if someone has drunk enough to avoid over-serving patrons
- Keeping walkways clear and emergency exits open
- Ensuring your staff frisks every customer at the entrance
Remember, incidents such as fires, raids, and even natural disasters can also happen at your adult nightclub, causing injuries and property damage. With this in mind, other than general liability insurance, the right insurance expert can help you choose additional insurance coverages for your business.
To keep your adult nightclub business running smoothly, purchase the right insurance policies. At RMS Insurance, we understand the inherent risks associated with operating a nightclub. In order to secure your business, we offer a variety of coverages designed specifically for specialty clubs like yours. So, instead of wasting time searching for adult nightclub insurance near you, contact our specialists today at (516) 742-8585.