If you are motivated and do it right, owning and/or opening a bar/nightclub can be a great investment. There are many risks and uncertainties that come with highs. The success of bars and nightclubs depends on many factors, such as where it is located, whether it serves alcohol, who it is targeting, how long it has been open, and how big it is. These are some questions you should ask before starting a business in this industry. These questions will not only determine your success but will also determine the amount of insurance you need to protect your bar or nightclub. To get the best return for your business, you need to know how much you have to make every day to break even.
Types of Insurance for Bars, Nightclubs, & Taverns:
Public Liability Being in this field of work, your main aspect of income relies heavily on the flow of customers and how often these crowds will fluctuate. Your business requires you to provide constant customer service, which can put you at risk. This type of business requires employees to be able to maintain the grounds and keep them clean. This will reduce the chance of a customer being injured. If you are in an unfortunate situation, general liability may be available to you in case the patron or customer is hurt.
Liquor and Product liability: Safety measures are essential when serving food or beverages in bars and nightclubs. You must follow all procedures regarding alcohol consumption and food preparation. Intoxicated customers can cause serious injury to others and put you at great risk. Serving alcohol to customers can be dangerous as it will affect their senses while they are there and after they leave. You can protect your business and yourself from financial loss by getting liquor liability coverage. This covers you if an intoxicated person causes harm to anyone or property. Your business could also be sued if a customer causes an injury to another person on the way home from a drink. This insurance covers most of the costs of legal fees and criminal damages.
Property Insurance As most businesses, you will need to get insurance for your property in order to protect your earnings in an affordable way. If something is stolen or damaged at your physical location, you are liable. You won’t have any out-of-pocket expenses. The following are some events that could damage your property.
- Fire
- Lightning
- Hail
- Theft
- Vandalism
Workers Compensation This is similar to general liability insurance, however it is aimed towards your employees as opposed to customers. You can be held responsible if your employees are hurt in your workplace or on your premises (such as the parking lot). In the event of an accident, workers compensation can protect you. There are many ways to be injured in bars and nightclubs.
How Much Does Bar & Nightclub Insurance Cost?
Costs of insurance are determined by many factors. Insurance prices can vary greatly in this industry. The following factors may help you get an idea of what the price range could be. These are the main elements you should consider when determining the cost of your insurance.
- What size establishment it can house and how many
- Lage
- Annual sales and revenue
- Liquor sales
- Gaming and entertainment live
- Staff size
- Delivery/Catering Services Available
