What Insurance Coverage Do Bars Need?

What Insurance Coverage Do Bars Need?

Bars and restaurants alike are legitimate businesses that require different types of insurance coverage because of the nature of work that goes on there. Not only is alcohol served to patrons, but your employees also need insurance coverage for their well being. Below we get into the specific types of insurance you need for your tavern, bar or liquor establishment.

Property Insurance For Bars

One of the main advantages for having property insurance is that it will protect your business from losses resulting from physical damage to your property. This type of insurance can cover not only the physical building that your establishment inhabits, but it can also cover and personal property that is used within your establishment.

?      Replacement Cost Coverage

Another option of property insurance is that you can insure your property in its actual cash value or its replacement cost. Many bar owners will choose replacement cost even though it is more expensive, because it is a good investment if your business ever suffers a large loss of any kind.

?      Business Income Coverage

To protect your property against lost income you may lose in the event of a disaster at your bar you will want to get business income coverage so you don’t lose any income while remodeling your building and it is shut down.

?      Flood/Earthquake Coverage

If your bar is in an area susceptible to natural disaster, such as a flood or earthquake, it would be in your best interest to get insurance coverage for that. You should purchase either flood insurance or earthquake insurance to ensure your business will be covered in the worst case scenario.

Liability Insurance For Bars

There are two different types of liability insurance that you will need to own and operate a bar, general liability and liquor liability insurance. Liability insurance is extremely essential at an establishment that serves alcohol.

?      General Liability Insurance

This type of liability policy will protect your business when a third party claims they got injured on your property. If a customer were to slip and fall in your bar and hurt his or her leg, general liability insurance will protect you. Another type of general liability coverage that you need is product liability coverage. This is the kind of insurance that will save your business if a product you sell to a customer causes any physical harm or property damage. There are some bars that offer different kinds of entertainment in the form of live bands, pool tables, mechanical bulls, etc. If your bar is one of these types, you will need additional insurance to cover these types of liabilities.

?      Liquor Liability Insurance

If your establishment serves liquor, it is probably excluded from the general liability insurance coverage. In order to get insurance for your establishment that serves liquor you will need to purchase liquor liability insurance. There are, however, a number of different factors that will affect the type of liquor liability coverage you need. These factors include nature of business, the state your establishment is operated in, and the percentage of alcohol sales compared to your total sales.

Insurance Options For Your Bar

Whether you serve alcohol or not at your establishment, you will always need insurance coverage. If you do serve alcohol, you will need additional types of coverage. At Restaurant Programs of America, we can offer any type of insurance your bar or your restaurant may need. We are a nationwide insurance company that specializes in helping cover restaurants and bars to help run their business smoothly and efficiently. To learn more about Restaurant Programs of America and the types of services that we can offer, contact us today or contact a member of the RPA team nationwide.