Nightclubs are among the few businesses whose clients are a risk to the operation. It is not unusual for nightclub patrons to become rowdy after getting intoxicated. In the process, they can quickly start fights, cause bodily injuries, and damage property. While it is possible to minimize the cases, you can’t fully shield your business from these risks. For this reason, you need to protect your nightclub business from financial losses emanating from various perils. Here is a look at essential insurance policies for nightclub businesses.
Liquor Liability Insurance
The brain has a mechanism for restraining impulsive behavior. The bad news is that alcohol inhibits this mechanism, which may cause a drunk patron to become erratic and aggressive. This means that you will have many cases of rowdy clients who cause damage. Liquor liability insurance is one excellent coverage that can shield you against damages that intoxicated patrons cause. This policy pays for the liability costs that emanate from third-party bodily injuries and property damage. If, for instance, a drunk client from your club vandalizes someone’s property, liquor liability insurance will cover the resulting losses.
Assault and Battery Liability Insurance
Cases of assault and battery are common in nightclubs and other establishments that sell alcohol. In case of alcohol-fueled violence in such an establishment, the owner of the establishment may be held liable for the resulting property damage and/or bodily injuries. That’s why it’s crucial to have assault and battery liability insurance. This policy covers the physical and emotional injury that may result from fights among patrons.
Workers’ Compensation Insurance
A nightclub is a business like any other, just that it has a different set of risks. Therefore, you need to also protect your employees by carrying the right worker’s compensation insurance. This policy pays for treatment costs, rehabilitation expenses, and lost wages for workers injured or falling sick while working. Workers’ comp is especially essential for nightclub attendants considering the high-risk environment they operate in. For example, a bartender can easily get into altercations with drunk patrons who may end up assaulting them. While it’s possible to prevent such from happening, there’s no guarantee that an employee will not get injured at work. So, workers’ comp is necessary.
General Liability Insurance
This policy covers your business against financial losses that may come about in case your business operations result in bodily injuries or property damage to third parties. For example, in case a patron from your nightclub drives under the influence, causing an accident, the authorities will hold your business liable. As a result, you will have to pay for defense and compensation if the accident victims sue you. That’s where general liability insurance comes in handy. While liquor liability insurance also pays for liability, the risk is too high, which is why you also need general liability insurance. Take note that this policy does not cover injuries that you and your employees sustain at your premises.
How Can RMS Hospitality Group Help?
At RMS Hospitality Group, we provide a comprehensive liability insurance program with specialized services. We provide commercial liability insurance for clubs with live music, dance floors, food, and all sorts of entertainment. Contact us today to learn more.