Bar owners invest a great deal of money and time to set up an establishment. Without sufficient protection, the establishment could face loss in a single incident. Bar insurance protects investment owners make in par and pubs for potential risk. It is a type of commercial insurance designed to meet the need of bar and pubs. Most bar policies come in a package, and they combine several individual coverages into a single policy.
Bar and pubs require a different type of insurance coverage due to the nature of the work going on there. Not only alcohol is served at that place, but the employees working in the bar need coverage for their well being.
Property insurance will protect your bar from losses resulting in physical damage to the property you own. The property includes the building where the bar operates and other personal property you use in the business. Many bar owners obtain the insurance as a part of a package policy.
Here are given the coverage you will get with the bar insurance package.
- Replacement cost coverage – You can ensure your property in cash value or replacement cost. Many bar owners choose replacement cost even though it is expensive. It is a good investment, and if your business suffers a large loss, you will get the money back.
- Business income coverage – Suppose fire badly damages the building in which your bar operate. You will be forced to close your business until the building is repaired. Most policies don’t cover the income you lose during the shutdown. To safeguard your building against such type of income losses, you should purchase business income coverage.
- Flood coverage – The property policies exclude the damaged caused by flood and earthquake. But if your bar is located in the flood-prone area, it would be best to take insurance coverage for that.
Bar insurance should include both general liability and liquid liability coverage. This insurance is essential for a liquor establishment.
General Liability Insurance
The policy will protect your business when a third party claims he has been bodily injured on your property. Even if a customer falls in your bar and hurts his leg, the liability insurance will protect you. If a customer falls ill due to the food, he ate from your bar and sued you for bodily injury. Your liability policy will cover the claim. Some bar provides entertainment like a live band, music show, dance and other amusement like pool tables. The bar that engages in such activity will have to pay more for the insurance.
Liquor Liability Insurance
If your establishment serves liquor, this excludes from the general liability insurance coverage. To get insurance for liquor-serving establishment, you need to buy liquor liability insurance. There are certain factors included that affects the type of coverage you need. The factors include nature of the business and the percentage of alcohol sale in your establishment.
The insurance policies specialize helping restaurants and bars to help them to run their business smoothly and efficiently.