Bars, like any other business, need the right insurance portfolio so they can thrive. Without the key policies, the bar is left exposed and on the hook for financial damages from claims they incur. In this post, we’ll explore the fundamental policies that these businesses need to carry in order to complete their Bar Insurance portfolio, and to adequately safeguard their operation and assets.
Commercial Property Insurance
This secures the physical property of the bar and any owned items on it. Insuring the bar can be completed in two different ways: Actual Cash Value (ACV) or replacement cost. Over time, equipment and machinery depreciate, and ACV insurance will reflect that decrease in worth should it need to be replaced. However, while replacement cost insurance is more expensive, it is a better investment. If the brand-new equipment the bar purchased somehow fails or becomes damaged within a year, the replacement cost insurance will replace it.
Liquor Liability Insurance
Serving liquor, beer and wine inherently comes with risks. As bar owners can be held liable for damages caused by intoxicated patrons, liquor liability is a must.
The cost of liquor liability coverage depends on several factors. These include the nature of your business, the percentage of your total sales that is comprised of alcohol sales, and the state in which you operate. Generally, you’ll pay more for insurance as your alcohol sales increase relative to your total sales. Moreover, liquor liability coverage is more expensive in states that hold bars owner liable for injury to third-parties caused by an intoxicated patron. It is important that you understand how the liquor laws apply in your state, explains The Balance.
Assault & Battery Insurance
In some cases, this coverage is included in liquor liability insurance. However, it’s important to note that injury to patrons caused by bar owners would be an exclusion, under the “expected or intended injury” provision. Ensure assault and battery coverage limits are adequate to protect the bar against claims.
About RMS Hospitality Group
At RMS Hospitality Group, we are dedicated to protecting the operations of bars and their employees. Our comprehensive coverage provides protection against a broad scope of exposures your businesses and employees face to promote their success and longevity. For more information, contact our knowledgeable specialists today at (516) 742-8585.