Build Your Bar Business or Go Bust: Why Nightclub & Bar Insurance Could Make the Difference
Adding alcohol to the menu is a surefire method to boost revenues, but it can also be a recipe for business disaster.
For new bar or nightclub owners that aren’t aware, Dram shop laws are designed to prosecute bar and nightclub proprietors, bartenders and wait staff who over-serve alcohol to their customers. In general, dram shop laws favor the plaintiff, even if the person suing you is the very same patron who got drunk at your bar, left and got into a drunk driving accident!
In this case and many more, standard business liability insurance will not be enough to protect your business and recoup expenses if you are sued.
With over 48 years of experience in hard-to-insure industries under our belt, El Dorado Insurance Agency is the partner you need, with the experience you need to protect your investment and potentially save your business.
Nightclub & Bar Insurance: What Is It?
Wherever alcohol is sold and served, special considerations arise. Alcohol consumption (like secondhand tobacco smoke) has the potential to affect innocent non-imbibing patrons and partakers alike.
For this reason, nightclub and bar owners must take care to carry the right type of insurance to protect their investment and operation. It is also essential to select a trustworthy, experienced and established insurance professional with a wide variety of knowledge within difficult-to-insure industries.
Nightclub & Bar Insurance: What Do I Need?
El Dorado Insurance Agency will work with you to created a customized insurance package based on your unique needs as a Bar or Nightclub operator. The following list represents many of the typical options that can be included in a customized insurance package for your business
General liability is, as its name suggests, protective of the building structure, contents, general premises and any incidents not directly traceable to alcohol consumption (for this, see “liquor liability”)
Liquor liability insurance is simply not optional for any establishment serving or selling alcohol
For live events on the premises, event liability insurance covers all the possibilities that cannot be foreseen, as well as many that can
In the event that a bouncer’s need to remove an intoxicated patron requires causing unavoidable harm to that patron, this policy will protect the business and the bouncer.
Assault and Battery Liability
It is simply impossible to predict how consuming alcohol will affect every patron that walks into the bar or nightclub. Some may become mellow and others may get belligerent. Assault and battery liability is thus one of the most essential riders to carry in this business
For any bar or nightclub offering valet parking, this can be a real benefit if a vehicle sustains damage while on the bar or nightclub property
For bars and nightclubs that feature local or out of town entertainers, there may be a requirement to carry this liability rider
Workers Compensation Insurance
An on-site worker injury can be very costly to a business that lacks workers compensation insurance
Additional Insurance to Consider
In building a customized insurance package tailored to the needs of each unique hospitality business, sometimes it becomes necessary to add certain additional riders to an insurance bundle.
Currently required in all 50 states.
Currently required in some states.
Currently required under federal law for any bar or nightclub with 50+ full-time employees
This rider covers loss of business income due to utilities outages and other reasons
This coverage provides for necessary repairs of equipment and/or appliances
Specialty Contents Insurance
This rider will insure items not covered under general liability (such as alcohol inventory)
For owner-operators who own rather than lease the property or building, this rider insures for the value of the structure itself
Why Insure With El Dorado Insurance Agency?
With nearly 50 years of operation in 48 states, El Dorado Insurance Agency has earned its reputation as an affordable, trusted insurer for difficult-to-insure industries. With our outstanding network of commercial insurers, you will always get the most insurance for the lowest rates.
Give us a call at 1-800-221-3386 or fill out the form to the right and we’ll contact you right away to start building the right insurance quote for your unique business.
We look forward to serving you!