Bars, taverns and similar establishments are exposed to a variety of risks that they should be protected against. If you run such an establishment, including the following insurance coverages in its bar insurance policy is probably a wise idea.
What Coverages Should Be Included in My Establishment’s Bar Insurance Policy?
General Liability Insurance: For Common Risks
General liability insurance is a foundational coverage that’s used in lots of industries to protect businesses from basic risks. Theses risks are ones that most bars face. They typically include:
Common accidents that occur on company property
Certain accidents that occur off-site but a business is responsible for
Defamation and false advertising claims
Liquor Liability Insurance: For Alcohol-Induced Incidents
While general liability insurance covers many common accidents, it frequently excludes ones where alcohol plays a role. Liquor liability insurance typically covers a wide range of alcohol-induced incidents, often including:
Common accidents involving intoxicated patrons
Assaults by intoxicated patrons
Auto accidents after intoxicated patrons leave an establishment
Even though bars may not be directly involved in these types of incidents, they’re sometimes held financially responsible for letting patrons become so intoxicated that these things happen.
Assault and Battery Insurance: For Employee-Involved Assaults
The assault protection provided by liquor liability insurance is normally limited to claims arising from intoxicated patrons’ actions. It doesn’t usually extend to incidents caused by employees, which is where assault and battery insurance comes into play.
Assault and battery insurance generally helps defend against claims where there is “expected or intended injury” from the perspective of the policyholder, which is the establishment in the case of a bar policy. Should a bar employee who acts on the behalf of a bar, such as a bartender or bouncer, get into a conflict with an unruly patron, any harm that they inflict on that patron may be covered by this insurance.
Workers Compensation Coverage: For On-the-Job Injuries
Workers compensation insurance protects employees who suffer job-related injuries and illnesses. In the event that an employee suffers a covered injury or illness, the insurance may help pay for lost wages and medical care.
Most states require businesses that have employees to carry workers compensation, so the vast majority of bars need it.
Commercial Property Insurance: For Owned Buildings and Inventory
Commercial property insurance is designed to help protect property that businesses own, and it can frequently be used to safeguard a wide range of property. Depending on their specific situation, bars might use this insurance to protect:
An owned building
Ingredients and supplies
Tenants Betterment Coverage: For Improvements Made to Leased Spaces
Bars that lease a commercial space but have made improvements to it might want to supplement any commercial property coverage with tenants betterment insurance.
Tenants betterment may be used to protect a wide range of improvements that are made to a leased space. Many parts of a build-out fall within the coverage’s domain.
Equipment Breakdown Insurance: For Essential Equipment
The protection that commercial property insurance provides for equipment is typically limited to physical perils, such as fire, theft and similar risks. Bars that would like additional protection against unexpected breakdowns can usually supplement property insurance with equipment breakdown insurance.
Equipment breakdown normally insures essential equipment against malfunctions and breakdowns. Depending on terms and conditions, the insurance might help cover emergency repair calls, standard repair calls, employee-completed repairs and other costs associated with breakdowns.
Commercial Umbrella Insurance: For Extra Liability Protection
Commercial umbrella insurance is a supplemental form of liability coverage that generally provides additional protection against large covered claims. Establishments might use the insurance to boost their general liability, liquor liability, assault and battery, and other liability protections included in a bar insurance policy.
Find the Right Bar Insurance for Your Establishment
While these insurance coverages are generally helpful, this isn’t a comprehensive or universal list of the protections that all bars might need. For help finding the right combination of coverages for your establishment, speak with one of the independent insurance agents at World Insurance Associates. Our agents are well-versed in bar insurance policies, and can provide coverage selection guidance based on your establishment’s particular situation and needs.