Owning your own bar or tavern in the “Lonestar State” can be a very rewarding – and a very lucrative – situation. And while mingling with customers, joining in the joy or heartbreak of your patrons based on how the big game ended and seeing new promotions or incentives pay off in sales can be satisfying, owning a bar isn’t all just fun and games. Insurance for bars can seem a little overwhelming, but it doesn’t have to be!
Yes, there’s a certain amount of risk associated with bar ownership that you have to be aware of also. Thankfully, your insurance coverage can eliminate much of this risk – but there are a lot of different aspects of coverage that you need to be mindful of when it comes to insuring your bar. Failure to have a certain type of coverage, for instance, can really come back to bite you.
In order to give you a better idea of what type of insurance you need to have in order to rightfully cover your bar, we’ve put together this handy list of five insurance tips.
5 Easy Tips on Insurance for Bars
Don’t think it can’t happen to you:
Even if you run a clean bar in a safe neighborhood, chances are you’re still going to run into trouble at one time or another. “But it will never happen here, not to my bar,” you think. Think again. It’s important to not cut corners when it comes to insuring your establishment. After all, not having the right coverage for a particular incident could accumulate out of pocket legal fees that end up forcing you out of business. Insurance for bars isn’t just a smart business decision; it’s really the only way to protect your bar!
Don’t assume it’s all covered by your general liability policy:
Yes, your general liability insurance policy is an essential one. But it’s not the be-all, end-all when it comes to insurance for your bar. Your GL policy generally covers property damage and bodily injury in the event a patron is hurt on your premises. But there are exceptions to the GL policy that you need to be aware of.
Always have a liquor liability policy:
In the state of Texas, liquor liability insurance for bars is optional, not mandatory. But we strongly advise adding this coverage. Why? Because this covers customer injuries or property damage that are the result of intoxication. Your liquor liability policy will cover court fees and attorney costs up to the limits of your policy in the event that your bar is sued.
Read more on InsuranceJournal.com.
Always have assault and battery liability coverage:
Liquor liability coverage is just a start – you should also always be sure that your bar has assault and battery coverage. Assault and battery coverage, incidents that normally stem from the consumption of alcohol, usually isn’t covered by a standard liquor liability policy. Acquiring this insurance can protect your bar if you’re held liable in such an incident.
Do you need extra protection/other coverages?
While we’ve covered general liability, liquor liability and assault and battery coverage, there are a few other coverage types you may choose to add, depending on the type of bar you run. For example, if you want to add some extra protection, we’d recommend taking out an umbrella policy.
These policies add more coverage to your existing policies, and are purchased in increments of $1 million. You may also elect to purchase a garage-keepers policy if you run a high-class bar that offers valet parking services.
A garage-keepers policy provides coverage for your customers’ cars while they’re parked on your property. Finally, another coverage to consider is product liability insurance – specifically if your bar serves food. This way, if any of your customers experience sickness from the products that you’re serving, you’re covered should your bar be held liable for medical costs or other costs.
This post isn’t meant to scare you, but to inform you. Inform you, that is, of everything that you need to be considering when it comes to insurance matters for your alcohol-serving establishment. Like we said earlier in this post, all it takes is one incident to potentially put you out of business. Make sure you’re covered.