Why Your Establishment Needs Bar and Restaurant Insurance

If you own a restaurant with alcoholic beverages on its menu for its customers, your business is exposed to additional risks and needs extra protection. Your restaurant insurance coverage may not be sufficient to offer you comprehensive protection, leaving you vulnerable to damaging financial loss.

This blog discusses how buying bar insurance along with restaurant insurance can secure your business better, the coverages it includes, and things to consider while buying bar insurance.

Bar Insurance and Its Coverages

Bar insurance includes several insurance coverages that protect your restaurant from unique risks such as alcohol-related accidents and brawls, lawsuits emanating from negligence in serving alcohol, reputational risks, property damage, equipment malfunction, food contamination, and food delivery-related accidents.

Bar insurance includes:

  • General Liability
  • Liquor liability
  • Assault and battery
  • Employment practices liability
  • Commercial property
  • Equipment breakdown
  • Workers’ compensation
  • Spoilage
  • Excess liability

Why Must You Buy Bar Insurance?

Bar insurance is highly effective and vital for any business establishment that serves or sells alcohol. They include restaurants, bars, taverns, pubs, wineries, breweries, liquor stores, and convenience stores selling liquor.

However, though bar insurance covers general liability, you must purchase separate general liability insurance as part of your business insurance package for maximum protection against liability claims.

Do I Need Bar Insurance for My Restaurant?  

Whether your restaurant needs bar insurance depends on one crucial aspect: the inclusion of alcohol as part of your services. However, there are certain other factors based on which you must decide whether you need bar insurance.

  • If your restaurant faces higher risks due to its location and size of business, securing your financial interests with bar insurance can be a more viable option.
  • Restaurant owners serving alcohol necessarily need liquor liability and battery and assault insurance. These coverages are included in bar insurance and not restaurant insurance.

Things to Consider When Buying Bar Insurance  

Bar insurance is vital to your restaurant’s financial security. However, when you buy bar insurance for your restaurant, there are certain factors that you must consider, such as:

  • Ensure that the insurance has assault and battery insurance coverage
  • Covers legal costs in the event of expensive lawsuits in a liability claim
  • Covers both the restaurant employees and your customers


When Should I Buy Bar Insurance?

Restaurant insurance may need to be more adequate for your business needs, especially if you serve alcohol. You must assess the claims and extent of damages covered in your existing restaurant insurance coverage. If the included coverage falls short of ensuring comprehensive financial security for your restaurant, you should consider buying bar insurance.

Ensure Added Security for Restaurants with RMS Insurance

Restaurants are high-risk businesses that need specialty insurance programs. At RMS Insurance Brokerage, LLC, we specialize in the hospitality sector and offer restaurant insurance that ensures maximum protection for your business.

For more information on the wide array of specialty insurance plans that we offer, contact us today to get the best services in New York.