Bar insurance helps protect your tavern or restaurant business from inherent risks through customized policies. Each policy addresses different types of exposures, tailoring coverage to your operations and needs. Here are six types of insurance for bars that can protect you from potential issues:
Liability Insurance
General liability insurance helps shield bars against legal claims from patrons who might sustain injuries on the premises. This insurance covers costs if a patron slips, falls, and becomes injured due to spilled drinks or wet floors. General liability also pays attorney fees if an injured patron sues your bar for damages. Without protection against liabilities, you might be held responsible for high medical bills and legal costs.
Liquor liability coverage protects bars from claims or lawsuits stemming from the overservice of alcohol to intoxicated patrons who cause accidents or violence. It covers medical costs if an overserved patron causes damage from a DUI and injures a third party. This policy also covers legal fees that might result from litigation. Policies pay compensation to victims who win judgments or settlements against your establishment.
Workers’ Compensation Policies
Workers’ compensation insurance covers medical treatment and wage replacement if a bartender is injured while performing their job. It also protects bars from employee lawsuits related to workplace injuries. Workers’ compensation pays necessary expenses regardless of who is at fault. Employers who carry coverage avoid paying high out-of-pocket costs for medical care and lost wages. This type of coverage is usually required by law.
Property Insurance Options
Commercial property insurance covers damage to the building, contents, or inventory caused by disasters like fires or storms. It will also cover repairs and replacements of furnishings, kitchen equipment, and damaged or destroyed inventory. Business interruption coverage supplements property insurance by reimbursing lost revenues if your bar temporarily shuts down for repairs. Property insurance helps resupply liquor and fix structural damage so bars can reopen quickly and minimize revenue loss.
Errors and Omissions Coverage
Errors and omissions bar insurance covers lawsuits filed by patrons dissatisfied with services. It handles legal claims based on alleged negligence or failures to deliver agreed-upon services. This policy helps resolve minor disputes that could lead to lengthy, expensive litigation.
Directors and Officers Policies
Directors’ and officers’ liability insurance insulates bars from legal claims against their executives. It covers defense costs if executives are sued by aggrieved investors, employees, or business partners. Directors’ and officers’ policies pay for settlements and judgments issued against executives if they are found liable. This insurance helps attract top industry talent by protecting executives from personal financial exposures.
Umbrella Insurance
Umbrella policies provide extra liability coverage when losses exceed the limits of general, liquor, or other underlying policies. They provide supplemental protection from major claims or lawsuits that could significantly financially damage your bar. Filed claims tap into umbrella coverage once primary policies max out. Commercial umbrella insurance helps insulate bars from catastrophic losses to determine if operations can continue.
Get Bar Insurance Today
Having the appropriate coverage helps safeguard your business from potential risks associated with owning a bar. Assessing your exposures and risk tolerance through bar insurance policies helps shield you against losses and keep your business afloat. Work with a licensed agent to build a commercial insurance program customized for your operations and needs.
