Running a bar involves unique risks, including accidents and legal liabilities. These risks can be covered by insurance policies that protect bar owners from potential conflicts, accidents, and legal issues. Here are eight different types of bar insurance policies:
1. General Liability Insurance
Bar insurance usually includes general liability insurance to cover accidents, injuries, and property damage associated with the bar’s activities. It also protects the bar from financial loss during a slip and fall lawsuit, accidental injury, or to replace a customer’s damaged property. It also covers legal defense and settlements in the case of accusations of copyright infringement or misleading advertising.
2. Liquor Liability Insurance
Liquor liability insurance is intended to cover claims made against a business for serving alcohol to visibly intoxicated customers. If an intoxicated patron causes property damage or bodily injury to other patrons in or out of your establishment, you may be held liable. Liquor liability insurance covers legal fees, settlements, and medical costs stemming from such incidents. It helps reduce financial risks associated with over-serving and underage drinking.
3. Property Insurance
Property insurance protects the bar’s assets, including the building, equipment, and inventory. Property damage can be caused by fire, theft, or vandalism, and reparation is often expensive. Property insurance helps cover these costs. In the case of severe weather or fire, insurance can also help replace the bar’s furnishings, kitchen equipment, and decor so business can resume. Some policies also include loss of income during temporary closing periods that result from property damage.
4. Worker’s Compensation Insurance
All business owners are legally required to provide workers’ compensation insurance for their employees. In the event an employee becomes ill or injured on the job, this insurance covers medical expenses, rehabilitation, and wage benefits for affected employees.
Bars are fast-paced environments, and employees are at risk of slips, cuts, and burns. Without workers’ compensation, a bar must pay for medical bills and lost wages out of pocket. This insurance ensures employee protection but also protects the bar from potential litigation.
5. Commercial Interruption Insurance
If your establishment must close temporarily for repairs, commercial interruption insurance may repay profits lost during that time. This insurance policy usually covers ongoing expenses, including rent, utilities, and employee wages, that become hard to pay after a fire or natural disaster closes your business. It can also cover the cost of setting up a temporary business location if needed. Unexpected shutdowns can strain your business’s finances, and commercial interruption insurance helps prevent permanent closures.
6. Equipment Breakdown Insurance
Bars require refrigeration units, kitchen appliances, and ice machines for day-to-day operations. Equipment breakdown insurance often pays for the repair or replacement of key equipment that breaks down or fails unexpectedly. It shields the financial loss caused by mechanical breakdowns, electrical surges, or operator errors.
Equipment failures can result in spoiled food, customer service denial, and other operational disruptions that may have long-term effects. Insurance policies help restore business operations quickly without out-of-pocket costs.
7. Assault and Battery Coverage
Assault and battery coverage protects the bar from being sued for fights or any other violent incident that occurs on-site. If a customer gets in a brawl with a patron, or a staff member is accused of using excessive force to remove a patron, the bar could be sued for liability. Assault and battery insurance covers legal fees, medical expenses, settlements, and damages that may be incurred during a lawsuit.
8. Cyber Liability Insurance
Many bars rely on electronic payment systems that store customer information. Cyber liability insurance protects businesses in case of a data breach, cyberattack, or identity theft that results in the distribution of customer information. If a hacker accesses sensitive customer information, a bar could be sued, and regulatory fines must be paid. Legal defense, notification, and credit monitoring services for consumers are key costs covered by cyber liability insurance.
Get Bar Insurance
Review the particular risks you may face when selecting the best bar insurance policy for you. Policies should cover customer and employee safety concerns as well as potential property damage. Invest in a comprehensive insurance plan to protect you and your business from any issue that may arise. Contact an insurance company that specializes in bar insurance today.