Bar and Tavern Insurance

Owning a bar, pub, saloon, taproom, cocktail lounge, social house, nightclub, or tavern can be a lucrative venture, but it can also be a lot of work to establish a local rapport that keeps the stools occupied. This usually requires a large initial investment, and protecting it with the right bar and tavern insurance is a great option to protect your business and finances. Without this coverage, your bar, tavern, or club could face hefty financial losses after incidents of guest injury, property damage, lawsuits, and more.

Our independent insurance agents are here to help you find the right type of bar insurance for your specific needs. They'll walk through all your concerns and get you matched with a policy that works the way you need it to. But first, here's some background on the protection you need to keep your bar, tavern, or club's happy hours covered.

What Is Bar Insurance?

Bar insurance is also referred to as tavern insurance, club insurance, or nightclub insurance. This coverage protects your business against many different potential causes of financial loss, including bodily injury to customers and other guests, lawsuits, property damage, and more. 

Since your business serves alcohol, the risk of injuries, property damage, and lawsuits is dramatically increased over companies that don't sell or offer liquor to the public. The following types of businesses can benefit from having bar, tavern, or nightclub insurance:

Having bar or club insurance can help protect your business against potentially hefty financial losses that can even result in bankruptcy without the proper coverage.

Why Do Bartenders Need Insurance?

Business owners and bartenders can greatly benefit from having bar and restaurant insurance because of the inherent risk of serving alcohol to the public. Depending on your state's dram shop laws, your establishment might be held liable for incidents caused by intoxicated guests, even after they leave your premises. That means bartenders at your bar, tavern, or club must consider the risk of accidents and other mishaps that occur in locations they can't actively monitor. 

Property Insurance Required for Bars

Whatever your bar’s niche, all it takes is one disaster to leave you with crippling repair costs. That's what makes having the proper protection key. Property coverage for bars is often broken down into the following options:

• Buildings coverage: This is a must-have if you own the building where your establishment is housed or are obligated to insure it. It covers structural repairs due to fire damage, severe weather, falling objects, vandalism, and theft.
• Contents coverage: This protects the property inside your bar, from tables to wall sconces to your supply of alcohol. You might need separate coverage for specialty items like outdoor signs, artwork, and antiques because their value is hard to determine after damage has been done. 
• Equipment breakdown coverage: Power surges or mechanical failures in your bar can affect sales and even your ability to stay open. This coverage compensates you for repair fees as well as lost income due to covered events that cause equipment breakdowns and temporary closures.
• Food spoilage coverage: If your bar includes a kitchen, an extended power outage could cause you to throw away a lot of spoiled food inventory. This insurance coverage provides compensation to help you get those walk-in coolers and freezers restocked and ready to go.
• Loss of income coverage: If your bar is forced to close temporarily after a covered disastrous event, like a fire, this will help provide a continuation of income so that you can pay required expenses and employee wages. 
• Flood insurance: If your bar is located in an area with even a moderate risk of flooding, a commercial flood insurance policy can be an important investment. Your bar insurance's property coverage likely excludes flood damage caused by natural sources unless you add separate flood insurance.

An independent insurance agent can help your bar obtain all the coverage it needs to increase its chances of staying afloat for many years to come.

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Restaurant and Bar Insurance Liability Coverage

Business owners can get sued for a variety of reasons. When you run your own business, especially a place that serves alcohol, the risk of being held legally responsible for incidents is much higher. Bar restaurant insurance takes this increased risk into consideration.

Liability insurance can protect you from potential lawsuits that may be filed against your establishment. Your coverage will provide reimbursement for your legal defense and court costs. Here are some common liability coverages purchased by bars and restaurants:

• General liability insurance: This covers the cost of third-party claims of bodily injury or property damage, including lawsuits if your business is sued.
• Liquor liability insurance: This covers property damage or physical injuries caused by patrons who have been overserved at your place. This coverage is usually excluded under general liability insurance.
• Assault and battery liability insurance: Your bar or tavern can be held liable for incidents that occur on or off the premises, such as fights between intoxicated guests. Liquor liability insurance typically excludes this type of bodily injury liability.
• Product liability insurance: This coverage can cover incidents of your bar, tavern, or club's products, including food, causing harm to the public.
• Garagekeepers liability insurance: If your bar or nightclub provides a valet service, this coverage can reimburse you for losses related to damage to your patrons’ cars while in your care.

Be sure to speak with your independent insurance agent to get your bar equipped with all of the critical types of liability coverage it needs to be protected from lawsuits of all kinds.

Bar Business Insurance Coverages for Your Employees

Unless you wear all the hats around your bar, you’ve likely got employees who need to be protected. Some insurance policies are mandatory, while others may be required by lenders if you have a business loan. 

Optional coverage is also available and highly recommended due to bars' increased risk of employee lawsuits. Employee coverage bars need to consider include:

• Unemployment insurance: Required by law and included as part of your state taxes, this coverage provides temporary financial assistance to workers who become unemployed through no fault of their own. Once you establish and register with your state’s workforce agency and begin paying taxes, your business will be covered. 
• Disability insurance: This coverage pays part of an employee’s income if they can’t work due to illness or injury. It’s required by law in California, Hawaii, New Jersey, New York, Rhode Island, and Puerto Rico but is otherwise optional.
• Medical insurance: Most bars employ fewer than 50 people and aren't required by law to provide health insurance for their staff. If you have more than 50 full-time employees, however, you might be required to subsidize your workers' health insurance.
• Workers' compensation insurance: Slippery floors are all too common in bars, which makes the potential for slip-and-fall accidents and other work-related mishaps much higher. When employees get injured on the job, you could be responsible for their medical treatments, which can be covered by a workers' comp policy. Employees also forfeit their right to sue you for their injuries when protected by workers' comp.

An independent insurance agent will ensure your bar gets all the coverages it needs to keep its employees safe and the owner safe from employee lawsuits.

Save on Bar Insurance

Our independent agents shop around to find you the best coverage.

Request a quote

How Much Does Bar Insurance Cost?

The cost of bar insurance varies, considering every bar has unique risks based on its size, number of employees, and products served. Since every bar, club, or tavern is unique, each business's insurance policy must consider its specific needs. Your bar or tavern insurance cost can be impacted by all of the following factors:

The only way to know how much bar insurance will cost for you is to compare rates between a few different insurance companies. But an independent insurance agent can do this work for you and provide you with quotes for the most affordable coverage in your area that gets the job done right.

Where Can I Get Sports Bar Insurance or Restaurant and Bar Insurance?

Shopping around for the right bar insurance policy can take time. But researching your options is important with this kind of investment. You may want to speak with your accountant or financial advisor to determine your bar's exact value. This will help you get the protection that's just right for what you need.

In addition, a lawyer will be a huge help in determining all of your bar's liabilities that need coverage. Finally, finding an independent insurance agent who understands your needs is crucial. They'll shop and compare multiple policies and carriers for you so you walk away with the coverage that best protects your specific bar at the best possible rate.

Why Choose an Independent Insurance Agent?

Independent insurance agents simplify the process of finding bar, tavern, or club insurance by shopping and comparing insurance quotes for you. Independent insurance agents also have access to multiple insurance companies, ultimately finding you the best bar and tavern insurance, accessibility, and competitive pricing while working for you. And down the road, your agent will still be there to help you file business insurance claims or update your coverage as necessary.