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From bodily injuries sustained by slipping, tripping, or falling to property damage caused by an intoxicated customer - these are all some of the risks involved in running a bar, which can land your company in legal trouble.
Having business insurance in place for your bar will protect you, your business, and your customers from any unfortunate events and accidents that may result in a claim or a lawsuit.
Why Do Bars Need Insurance?
There are a lot of intoxicated customers in bars. And as a result - the risks and probability of an accident taking place increase by the hour.
For instance, if a fight breaks out - a lot of people can get hurt or even killed, which can be devastating for the company as the legal fees associated with the accident can be tremendous.
In other - simpler cases - if an employee slips on a wet floor and sprains their ankle - they can be out of work for a while, and having insurance can cover their lost wages.
Besides, by law, many bars need to take out a certain level of cover before they can obtain their liquor license and be legally allowed to sell and serve alcohol to customers.
Whatever the case may be - having the right insurance in place will provide your business with the necessary cover it needs and make the whole resolution process in case of a lawsuit a lot smoother for all parties involved.
What Types of Insurance Do Bars Need?
There are a number of insurance policies that are highly recommended for bars. The level of coverage you should take out for your bar will depend on the size of the business, how many staff your company employs, the area you operate within, and more.
For a more detailed breakdown of the most recommended insurance policies for bars - please take a look below.
How Much Does Bar Insurance Cost?
As with any type of insurance, the prices will vary depending on the size of your business, the level of cover that you require, and various other factors.
On average, bars in the United States pay around $270 per month or $3,240 annually for a business owner’s insurance policy.
If your bar has employees, you can expect to pay around $180 per month or $2,160 per year on worker’s compensation insurance. This policy will cover your employee’s lost wages, medical bills, hospital fees, and other costs in case they get injured or fall sick at the bar.
For an average of $170 or $2,060 annually, bars can take out liquor liability insurance to protect themselves from intoxicated customers and the risks that they carry with them. This policy is often a legal requirement for bars if they want to obtain a liquor license.
On average, general liability insurance for bars costs $135 per month, which adds to a total of $1,620 per year. This type of insurance will provide a level of protection against third-party injuries and property damage, which end up resulting in legal action or a claim.
Typical Bar Insurance Claims
Most common insurance claims made by bar owners revolve around customer and staff bodily injuries sustained due to trips, slips, and falls due to wet floors. In more rare cases - claims are made for bodily injuries sustained due to a fight that has taken place.
Property damage - whether caused by an intoxicated customer, vandalism, or poor weather conditions also isn't uncommon, and that’s something bar owners also make claims about.
Whatever the case may be, having the right insurance in place will protect your business from having to pay large amounts of money if an accident were to take place and legal action was taken.