Insurance for Bars and Taverns
Owning a bar is a potentially solid, long-lasting business. With the right promotion and care, your bar can continue supporting you and your family for the rest of your life. Whether you plan to expand into multiple bars or stay small with just one or two, protect yourself from potential financial problems by purchasing the right types of commercial insurance.
General liability insurance is a standard, broad coverage option for small businesses. Since it grows with your company, you can use it from day one and not have to worry about adding every change to it as you go. It expands to provide coverage and protection for new locations, new products and new hazards. General liability can protect you from problems such as damage from natural fire and liability due to customer injuries.
Business Owners Policy (Bop)
A business owners insurance policy (BOP) protects the tangible and intangible assets of your business. It includes general liability and can have bits and pieces added that are specific to just your bar’s business needs.
- Equipment Breakdown – Replacing or repairing broken machinery or equipment is expensive. If the equipment you use to make your alcohol drinks breaks down, you may not have the funds to get it fixed right away. A BOP can cover the repair costs or offer you a temporary replacement machine.
- Buildings and Contents – If the building your bar does business in is physically damaged, a BOP can pay for the cost of repairs. If the properties inside your bar are damaged, such as the tables, stools, mirrors or music system, the BOP will also cover those repair and replacement costs.
- Business Income and Extra Expense – Sometimes a severe loss can force you to close your bar temporarily until repairs or cleanup is complete. If you temporarily relocate or close your business, you will incur additional expenses and lose income from the closure.
- Electronic Data – The business files and data that you keep electronically is subject to loss or damage from a number of events. Simple power surges can corrupt your financial records, sales receipts or employee payroll system.
- Newly Acquired or Constructed Buildings – If you expand your bar or purchase a new one across town, your BOP can provide protection for the new structures for a specific period of time.
- Valuable Papers Protection – Any critical paperwork that you must keep for your business, such as licenses and regulatory forms, can be protected from expensive losses through your BOP.
- Employee Dishonesty Coverage – It is estimated that over $400 billion is annually lost by small businesses due to employee theft, fraud and other dishonest actions. Protect your bar from these losses with your business owners policy.
If you use automobiles for any business purpose, a commercial auto insurance policy can protect you from damages and loss that occur due to auto accidents.
When you have employees on your payroll, you must by law protect them with workers comp insurance. This coverage pays the employee’s medical bills and related recovery expenses if they are ever injured from an accident on the job.