Taverns and similar establishments have a variety of insurance needs, and tavern insurance policies are often best-suited for meeting those needs. When selecting a tavern policy for your establishment, there are several coverages that you’ll likely want included in the policy.
What Coverages Should Be Included in My Establishment's Tavern Insurance?
General Liability for Everyday Accidents
General liability insurance is a broad coverage that’s used by businesses in many different industries. In a tavern setting, a policy might offer protection in situations like the following:
While walking into the tavern, a patron slips on ice in the parking lot and is injured in their fall
While a vendor is delivering supplies, a stored keg falls on them and causes substantial injuries
An employee makes disparaging remarks about a competitor online, and they file a libel lawsuit in response
Broadly speaking, most general liability insurance covers certain third-party injuries, as well as slander, libel and false advertising lawsuits.
Workers Compensation for Employee Injuries
Employees normally aren’t considered third parties, so any injuries they sustain while working normally don’t fall under the domain of general liability. Instead, job-related injuries and illnesses are typically covered by workers compensation. Covered injuries might include repetitive motion issues, accidents and even harm caused by an unruly patron.
In many states, businesses that have employees are required to carry minimum levels of workers compensation insurance. Assuming your tavern has bartenders and other employees, there’s a good chance that the business is legally required to carry this coverage. A knowledgeable insurance agent can explain what the specific requirements in your establishment’s state are.
Depending on your state’s marketplace setup, workers compensation might be purchase as part of a tavern insurance policy or separately as a stand-alone policy.
Liquor Liability for Alcohol-Induced Incidents
General liability policies frequently exclude incidents where alcohol has a role, which obviously leaves an insurance gap for businesses that serve adult beverages. Liquor liability insurance is often used to fill in this gap.
Liquor liability policies normally cover a range of alcohol-induced incidents. Depending on a particular policy’s terms and conditions, these might include incidents where:
After leaving the establishment, a drunk patron causes a deadly car accident on the way home
Two intoxicated patrons get into a fisticuff, in which both suffer injuries that require stitches
An intoxicated patron stumbles and falls, hitting their head badly in the fall
In most states, a liquor liability policy is required in order to obtain a liquor license. An insurance agent who specializes in tavern policies can check the requirements of your establishment’s state and make sure the policy you get meets or exceed those requirements.
Commercial Property for Your Establishment’s Building and Equipment
If your establishment owns the building it’s in, expect to get commercial property insurance. Commercial property is typically used to insure commercial buildings, and many lenders will require a business to procure this coverage before they’ll underwrite a loan for a building. Of course, it’s a good idea to have coverage even if your establishment isn’t taking out a loan. Buildings can cost a lot to rebuild if they’re destroyed.
If your establishment leases a space, you may still want to a commercial property policy. In addition to covering buildings, these policies also can be adapted to insure equipment, inventory and supplies. An insurance agent can help you find a policy that offers the contents coverage your establishment needs but doesn’t come with unnecessary building coverage if you don’t have to worry about a building.
Talk with an Agent About These and Other Tavern Insurance Coverages
These are some coverages that taverns frequently need, but this isn’t a comprehensive list. To find out what additional coverages your establishment might want, contact World Insurance Associates. Our agents are well-versed in tavern insurance policies, and they’ll help you find a solution that has all the coverages which are appropriate for your establishment.