Do I Need Bar Insurance?

Every second you serve a drink in your bar, you take a risk. Bar insurance or business insurance will help protect you against accidents that can be pretty costly, including customer injuries. More than likely, depending on the state you reside in, it may be required. At the very minimum, you will probably have to obtain liquor liability insurance in order to serve alcohol legally on top of general liability insurance.

Types of Bar Insurance Policies

Bar insurance Denver-located, and other locations, all have similar policies that you can choose from, such as:

  • Business owner’s policy- This is a type of insurance for your bar that combines both general liability and commercial property insurance. It may also cover your bar for accidents such as power outages.
  • General liability insurance- This policy will cover your bar for common risks such as customer injuries that may occur in your bar, as well as customer property damage and advertising injuries. Most leases will require you to have this insurance.
  • Liquor liability insurance- This policy will cover any legal fees, medical costs, and settlements if beverages containing alcohol are served to a visibly intoxicated person who then causes harm to others or their property.

Bar Insurance Costs

While there are no exact estimates for bar insurance, you will find that a smaller bar with just a few workers will pay much less in premiums than a larger tavern.

Additionally, there are various factors that affect insurance premiums, such as:

  • Services offered include dining
  • Revenue of business
  • Business equipment and property
  • Types of insurance purchased
  • Policy deductibles and limits

Ways to Obtain Bar Insurance

It is quite simple to obtain bar insurance as long as you readily have your business information on hand. Insurance applications will ask you for basic information including your business revenue and the number of employees you have. You also have the option to purchase a policy online and obtain a certificate of insurance just by completing an application online, comparing insurance quotes, choosing a policy, and paying for your policy.

Additional Protection

Many bar insurance policies do not include communicable disease coverage such as COVID-19. Even if your bar includes business interruption insurance, disruptions must be related to commercial property insurance or your business owner’s policy in order to apply.

Final Thoughts

If you are still unsure whether bar insurance is for you, here are some signs that indicate you should obtain insurance.

  • You own a bar- Anyone that owns a bar should obtain bar insurance.
  • You want to open a bar- If you plan to open a bar anytime soon, you will need to look into bar insurance.
  • You’ve never had bar insurance- If you never had insurance but have always owned a bar, you should begin investing in bar insurance.
  • Bad events happen- If your bar has already experienced many bad events, you should probably consider investing in bar insurance.
  • You want to protect your business- Bar insurance can help protect the business that you have worked so hard to maintain.
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