When you own any type of private club, you have to be properly insured. While commercial property insurance and general liability are given as necessary, there are several other types of risks associated with owning and operating any club or lounge. Understanding why other types of insurance are important is the first step in making sure your club is fully protected.
Here are six types of insurance every social private club should have:
- Insurance for Board of Directors
Board of Directors insurance is necessary to ensure your company runs smoothly, especially if it is determined that one of your directors has been accused of illegal activity or mismanagement. While the club’s assets will be protected, the directors will not, unless you have a Board of Director’s policy in place to cover them. This insurance protects both the company and the board members.
- Employee/Volunteer Theft
It’s estimated that less than 45% of lost revenue can be traced back to an employee or volunteer theft. Private social clubs are no different. This type of coverage is very beneficial for private club owners. It will protect them from devastating financial loss if such theft is discovered.
- Liability for Special Events
Special event liability is meant to protect your club when you participate in events outside your general liability policy coverage. This can include parades, concerts, street fairs, or any other type of event where the public is allowed to interact with staff away from club property.
- Liability for Assault & Battery
Assault & battery liability insurance is a must if you own or manage a private club where there is a risk of fighting or brawling. This policy protects the club and its staff from any liability if two or more patrons start a physical fight and eventually end up damaging property and causing injury to themselves or others. One way to prevent altercation is to hire plainclothes security to patrol the area during events. This will keep fighting to a minimum and help maintain a sense of order throughout the club.
- Liquor Liability
Liquor liability insurance will protect your club if a person has been drinking and has an accident when they are on their way home. The fact is, a bartender or club staff can do everything that they are supposed to do to keep a person from drinking and driving. However, it may not be enough. A person may leave with someone else, but nothing stops them from coming back and getting their vehicle. Liquor liability also protects the private club against any other liability resulting from the consumption of liquor.
- Workers’ Compensation
Workers’ compensation is mandatory in every state unless you provide your employees with similar coverage. Workers’ compensation protects both the worker and the employee if an accident occurs involving personal injury and the loss of wages for any period of time. Once a workers’ compensation claim is filed, an employee no longer has the option to sue their employer for damages.
Owning a private club requires specific types of insurance to protect the business on many different levels. Our agents at RMS Insurance Brokerage, LLC can provide you with the insurance coverage you need for your club. Contact us today to learn more!