If motivated and done right, opening and/or owning a bar or nightclub is something that can pay off extremely quick and well. Along with the highs come the lows in the form of plenty of risks and uncertainties. How bars and nightclubs perform relies on a numerous amount of questions such as: where is it located, will it serve alcohol, what type of customers is it aiming towards, how many years has it been opened, how large is the establishment, etc. Before owning a business in this field, you may want to ask yourself these questions. Not only can these questions determine your success, but they will determine how much insurance you will need for your bar or nightclub. In order to get the largest return out of your business, it is essential to understand how much you need to make daily 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. With that being said, your business is also one that requires constant service to these customers which puts you at the risk and in charge of keeping these people safe. For a business of this type, it is best to teach your employees how to keep the grounds safe and to clean constantly, lowering the chances of an injury to a customer. However, if you find yourself in a situation where this might occur on your property, general liability can cover you if that customer or patron is injured.
Liquor and Product Liability: When serving food and beverage in a bar or nightclub, safety measures must be taken and the right procedures must be followed everyday regarding food preparation and alcohol consumption, no exceptions. If not, you put yourself at a major risk of severe illness to your customers and also open the door to intoxicated customers causing harm to another person or the establishment. Serving liquor to customers is a risk in itself as it is sure to effect your customers senses both while at the bar and after they leave. To protect yourself and your establishment from any unnecessary financial loss, getting covered by liquor liability can cover you should an intoxicated individual cause harm to someone or something on your property. Also, if a customer is over served and causes an accident on their way home, your business can be sued for the damages of this inebriated individual and if you are covered, this insurance can cover most of the legal costs, court fees, or any 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. Having a physical location under your ownership, you will be liable should something be damaged or stolen and being covered by this, you will not have to pay out-of-pocket for the whole amount. Some events that might damage your property and would be covered are:
Workers Compensation: This is similar to general liability insurance, however it is aimed towards your employees as opposed to customers. If any of your employees are injured inside your establishment, or on the premises, such as the parking lot, you can be held liable if not covered. Workers Compensation can cover you should an accident occur. Being in a bar or nightclub, there are plenty of chances for someone to get injured whether it be from slipping on a spill in the kitchen or getting hit with a splash of grease, there are too many opportunities for injury to take the chance and not get covered.
How Much Does Bar & Nightclub Insurance Cost?
There are many factors that will be taken into account when ultimately deciding the costs of your insurance. The range for insurance in this field can be drastically different and, though it will no be decided on only the following factors, these may give you the best idea of the range your prices could cost. Some basic elements to look at when figuring out the cost of your insurance will be:
- Size of establishment and how many it can hold
- Annual revenue and sales
- Liquor sales
- Live entertainment and gaming
- Size of staff
- Delivery/Catering available