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Every time an event is held at your banquet hall, there is room for risk. From bodily injuries sustained from trips, slips, and falls due to wet floors to accidental fire - there is plenty that can go wrong during an event.
Having an insurance policy in place for your banquet hall will safeguard you and your business in case a lawsuit or a claim is filed against your business in the event of an accident.
Why Do Banquet Halls Need Insurance?
In most states - banquet halls need to have a certain level of coverage before they are legally allowed to provide their facility to large gatherings and events. This is so both the business and the customers are protected in case something goes wrong.
For instance, if a fire breaks out - the banquet hall will need to be evacuated, and in case someone gets injured - or in the worst case - gets killed - that can lead to serious lawsuits, which can devastate the business's financial standing.
In other cases, if an employee gets injured while serving guests or when in the kitchen, the insurance will help cover any medical expenses, lost wages, and hospital bills that the employee accumulates as a result of the accident.
Whatever the case might be, insuring your banquet hall is a great idea as it can save you a lot of money in the event of an accident and make the resolution process a whole lot simpler.
What Types of Insurance Do Banquet Halls Need?
When it comes to insurance for banquet halls, there are a variety of options available. The level of cover your business requires will depend on the size of your business, the number of employees it has, services offered, and various other factors.
Below, you can take a look at some of the most recommended insurance policies for banquet halls in the United States.
How Much Does Insurance Cost For Banquet Halls?
As with any type of insurance, the prices will vary depending on your business and its needs.
A business owner’s insurance policy costs the average banquet hall business $135 per month or $1,620 annually. This policy combines general liability insurance and property insurance at a more reasonable rate. It may also include interruption insurance which will aid in income loss in the event of an unexpected business closure. For instance - if a fire breaks out and the event gets canceled.
To protect your employees, your business also needs to take out a worker’s compensation insurance policy. This will provide your employees with cover in case they get injured or fall sick at their place of work. It will cover lost wages, medical bills, hospital fees, and other costs associated with the accident.
If alcohol is involved - your banquet hall business also needs to take out liquor liability insurance. This will protect your company from any accidents that may arise caused by intoxicated customers. The average cost of that is $75 per month or $900 per year.
Any business in the U.S. can benefit from general liability insurance. The average cost for banquet halls is around $40 per month or $480 per year. Such policy will shield your business against lawsuits that may arise from third-party bodily injuries and property damage.
Typical Insurance Claims For Banquet Halls
Generally speaking, the most common insurance claims made are when an employee or a guest gets injured at any point during the event.
In more rare cases - banquet halls also claim insurance for property damage sustained from intoxicated guests, accidental fire, or poor weather conditions.