It is common knowledge your bar needs liquor liability insurance because of the liability selling alcohol causes. Are you aware there are other liabilities bar and tavern owners are subjected to that without the proper protection could put them into financial ruin? When something adverse occurs in your establishment, you can be found liable, costing you a great deal of money. Finding the right bar and tavern insurance will provide you with the risk management you need to keep your establishment open in the event of a tragedy in your bar. There are a variety of risk factors that are taken into consideration by insurance companies to predict your risk and determine what type of insurance your bar requires.
The Amount of Alcohol You Sell
The percentage of alcohol your establishment sells is the main way insurance companies establish the risk level of your bar. The more alcohol you sell versus other food and drink in your establishment, the higher your risk and your premium will be. Typically, alcohol sales over 50 percent of the total sales will cause the insurance premium to be higher.
Recreational Activities
If your place of business includes any type of recreational activities, such as dart boards, pool tables or mechanical bulls, there will be additional liabilities that need to be considered and accounted for when your insurance coverage is determined. Many insurance policies will not cover places that have risky recreational activities, including swimming pools and inflatable bounce houses, along with alcohol.
Employees
If your business will have employees, it poses another risk for the owner, requiring the presence of workman’s compensation insurance in the event an employee is injured on the job. While workman’s comp insurance needs to be present at most places of business, bars and taverns pose other risks to employees, such as assault and battery by patrons, which makes it important for bar owners to be properly protected in the event of any unforeseen circumstances.
Understanding how insurance companies assess your level of risk for bar and tavern insurance, is an important step to gaining the right insurance for your estabilishment. Finding the right bar and tavern insurance can help your bar stay in business. Without the proper insurance coverage, the risk for liability is high, causing you to suffer financial harm, not to mention more than likely losing your bar or tavern.
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