Coverage for bars protects your pub from financial losses due to lawsuits if someone gets injured or property gets damaged from an intoxicated patron. If you own a restaurant or bar business, consider purchasing liquor liability insurance to ensure compliance with the law. Here are some tips for finding the best bar insurance for your business:
Understand Your Coverage Needs
Since bars face different risks from interacting with customers, serving alcohol, and operating late hours, you require sufficient coverage. To shield your business from third-party claims of bodily injury, property damage, or personal injury, you need general liability coverage. Investing in liquor liability insurance helps protect your bar if a patron causes harm or damage after consuming alcohol. Property insurance pays for damage to your assets, while workers’ compensation covers medical expenses if an employee gets injured while working. If a fire breaks out or a storm destroys your equipment and you are forced to close the bar for an extended period, business interruption coverage helps cover ongoing expenses.
Review Your Policy Annually
As your bar grows, you require additional coverage to match the risks that come with the new changes. If your company offers food or catering services, you may invest in an errors and omissions policy. For business owners who want to franchise their bars, they likely need directors’ and officers’ coverage to protect them from potential financial losses. When you upgrade equipment or add more furniture, these changes should be reflected in your property insurance, which makes sure you receive sufficient reimbursement if they are damaged. If you hire new employees, it may affect your workers’ compensation premium, which means you should notify your insurer.
Customize Your Policy
Depending on the risks your business faces, you can tailor your policy to meet those specific needs. Operating late at night often correlates with increased alcohol consumption and a higher likelihood of altercations, which can elevate the risk of liability claims. To manage such issues, your policy could include assault and battery coverage, which protects your bar in the event of a lawsuit. When you fail to customize your policy, you might encounter risks that require you to pay out of pocket.
Work With an Insurance Agent
If you have trouble choosing bar insurance, an agent can help you tailor your coverage, depending on the services you offer. Many business owners might not have the expertise to identify gaps in their policies, but an insurance broker can point them out. For underinsured bars, an agent may suggest you purchase more riders or add-ons to compensate for what’s lacking. These professionals also help bar owners to find suitable rates from insurers so that they cover all risks adequately. If claims arise, an agent may help you file claims and negotiate with the insurer.
Invest in Liquor Liability Insurance
Since bars face problems from serving alcohol, it’s beneficial to purchase liquor liability insurance to compensate victims. If the case goes to court, the payment helps cover legal fees, medical expenses, and settlements. To learn more about the policies or get a quote, call an insurance agency today.
