Running a private social club requires you, as a business owner, to be aware of any possible risks that may arise in your establishment. You can be held personally liable for third-party bodily injuries and/or property damage that occur at your club because of your negligence or intentional misconduct. The right insurance coverage options can help you avoid financial ruin and keep your social club open. Here are other types of insurance a private social club might need
General Liability
General liability insurance (GL) covers your business against third-party claims related to property damage, bodily injury, as well as slander and libel claims. For example, if a member slips and falls, he/she could decide to sue your business for negligence. In this case, your insurer would cover the resulting medical costs.
Liquor Liability coverage
If you sell, serve, or distribute liquor at your social club, you may be legally liable for the actions of intoxicated members. Liquor liability insurance offers protection from lawsuits involving alcohol-related incidents that occur, such as a trip and fall accident, due to the alcohol your social club serves. While it is difficult to predict how your drunk patrons will behave, this coverage will protect you from having to deal with losses caused by intoxicated members.
Special Events Liability
Members of your private social club will probably use the facility as an event venue for weddings, family reunions, or other occasions. A special events liability protects you as the event holder from claims resulting from bodily injuries and property damage that may occur during such an event. General liability policies often exclude coverage for these types of events.
Employee/Volunteer Theft
Employee or volunteer theft insurance covers claims against an employee’s dishonest and fraudulent activities that may cause financial or physical harm to your business. For example, if one of your employers happens to lose or destroy property while in transit or on the premises, this policy will pay for the loss.
Assault and Battery Liability
Assault refers to the act of threatening to harm an individual, while the battery is the actual impact caused by the violent act. Assault & Battery insurance covers liabilities claims related to both patron-on-patron violence and employee-on-patron incidents. For instance, if there happens to be any bodily injury and property damage reported, this coverage can cover the medical expenses and damages.
Workers’ Compensation
When it comes to liabilities claims relating to work-related or injury, the workers’ compensation insurance will protect you from lawsuits by the workers. In such incident, this policy covers:
- Funeral expenses
- Disability expenses
- Medical costs
- Lost wages, if any
Board of Directors coverage
Your board of directors helps you attain your mission and objective. However, due to the nature of their work, board members are exposed to litigation risk. If an employee, vendor, or third party sues a director for alleged or actual wrongful acts, such as mismanagement of funds, the directors could lose their personal assets. In such a situation, a director’s and officers’ insurance policy can protect the assets at stake.
Business Income Insurance coverage
Physical damage to your premises can cause a slowdown or temporary suspension of operations, leading to losses. Business income insurance, which is a type of property insurance, helps cover lost earnings and certain additional costs when your business unexpectedly shuts down due to a covered incident.
Social private clubs face myriad legal challenges and risks. Securing adequate insurance coverage is a significant step towards safeguarding your professional assets. Contact us at RMS Insurance Brokerage for more information on the coverage you need for your establishment.