Bars and taverns require unique insurance needs, but fortunately, bar insurance is available to help you comply with local laws regulating insurance needs for such establishments, and to help if you need reimbursement after some unexpected costs.
Bar Insurance Policy Features
Most forms of Bar Insurance are actually a combination of four important policies:
- Business Owner's Policy—The Business Owner's Policy (BOP) bundles together several policies, including general liability coverage and property insurance. If rowdy patrons are breaking glasses, or people are suing because they fell after having a little too much to drink, this is the policy that will help.
- Liquor Liability Insurance—If you sell alcohol to someone who's already intoxicated, you're partly responsible for what they do, and you could be held liable for any damage they cause. That's not our opinion; many states have written this provision into law and require bars and taverns to have liquor liability insurance before opening up for business.
- Umbrella Coverage—The Business Owner's Policy provides the main coverage for your business, but if excessive damage (or a court-ordered payment for damages, in the case of a lawsuit) is involved, umbrella coverage can reimburse you for claims that would normally be difficult or impossible to pay.
- Worker's Compensation—Finally, the last major part of bar insurance is worker's compensation; in an industry where busy bartenders and wait staff are moving around at high speeds while dealing with customers, the chance of someone falling and getting hurt is higher than anyone would like. This form of insurance provides funds for medical care and wages if an employee gets hurt.
Insurance requirements for bars and taverns vary widely by state, so be sure to ask our a Hester, Heitel & Associates, Inc. representative for a bar insurance policy that matches your specific needs.