The Basics of Bar Insurance: Understanding Your Coverage Needs

As the owner of a bar, you are aware that a disaster could happen at any moment. Perhaps one of your employees is having a bad day, and they break some of your equipment or vandalize the property. Perhaps, you sell alcohol at the bar to the wrong patrons at the wrong time. Suddenly, those patrons are involved in an altercation, leading to a fight. The fight leads to extensive property damage and severe injuries. Without the proper coverage, your bar will have to cover the possible repairs and medical bills out of pocket. That’s why bar insurance is a significant investment. This policy prevents you from potentially having to file for bankruptcy if a disaster occurs.

While researching bar insurance, keep in mind that there are multiple types of bar insurance available for pubs, sports bars, wine bars, and taverns. Look for a policy that caters to the individual needs of your business. Generally, bar insurance covers any damage to your property, equipment, and inventory.

  • Property Coverage

Bar insurance contains building coverage, which protects your business if the building is vandalized or suffers damage.  All of your contents inside the building are covered if they are stolen or damaged. This means that you won’t have to worry about replacing any equipment, light fixtures, seats, or sounds systems if something happens to them.

If any essential items start to erode, bar insurance contains equipment breakdown coverage. Equipment breakdown coverage protects you in emergency situations when your equipment has been destroyed.

Food contamination coverage takes care of issues regarding spoiled food and beverages due to a fire or power outage.

Liability coverage is an important part of your bar insurance policy. It protects your business against possible claims and lawsuits. Basic liability coverage protects your business if you or your employees cause damage to someone’s property or injure them. Liability coverage is also significant if one of your customers suffers an injury while visiting your bar. Even an accidental slip and fall could leave you at risk of a serious lawsuit.

  • Workers’ Compensation

Your employees help make sure that your business continues to thrive. While you have to put safety measures in place to protect your customers, don’t neglect employee safety. Workers’ compensation protects your business if there is an injury in the workplace. Most bar insurance policies do not contain workers’ compensation, so you’ll have to amend your policy in order to protect your business. If there is a workplace issue, you may have to pay thousands of dollars in legal fees and medical bills, not to mention the possible damage to your business’s reputation. If your business is viewed as a place that doesn’t protect its employees, you could lose customers.

  • Other Types of Liability Coverage

As a bar owner, you’ll need more than regular liability coverage for your restaurant business. Assault and battery coverage protects your business if a drunk patron starts a fight and causes damage to someone’s property or injures someone. Assault and battery coverage takes care of the damages, as well as potential legal fees and medical bills.

Liquor liability insurance is one of the most important parts of your bar insurance policy. Your business is protected against possible losses due to an intoxicated patron starting trouble. At some point, every bar has to deal with a misbehaving patron who had one too many drinks. Investing in liquor liability coverage ensures that your business will remain stable if you have to deal with a serious claim. Liquor liability coverage is relatively expensive, so you’ll have to pay a larger premium than regular coverage. If necessary, consider adding umbrella insurance. Umbrella insurance adds an extra layer of protection in extreme cases when handling a claim that goes over your maximum liability coverage limit.

Bar insurance helps protect your business when you need it most. You’ll have peace of mind as you deal with the legal process. If you have any questions related to restaurant insurance, contact our experts at RMS Insurance Brokerage, LLC (RMS) today!

Leave A Comment

Get in Touch with Us Today (516) 742-8585  Contact Us

COVID-19 UPDATE:

At RMS and associated firms, business continues as usual. Our staff is remote-capable and available to handle all partners, brokers, and insureds at the present time. Contact us today!