Essential Insurance Coverages for Bars & Taverns

Posted on 7 August, 2020

Like any business, bars and taverns require insurance to run properly and to protect their operations. From slips and falls to the classic bar fight, businesses in the industry need to know where they stand on being protected from costly legal issues. And with bars from coast to coast doing their best in navigating COVID-19, understanding essential bar insurance is vital.

Here’s a look at some essential tavern insurance options that bars and taverns need to manage everything from legal issues to problems with the public at bay.

What kind of insurance do bars, pubs, and taverns need?

There are various insurance policies that a tavern needs to operate smoothly and protect itself, and others, from high legal payouts and drawn-out litigation. Having local coverage, such as Connecticut bar owners insurance coverage from Byrnes, can help provide a well-rounded and essential layer of protection.

Here are some examples of essential tavern insurance:

Property Insurance: Commercial property insurance protects your bar or tavern from losses resulting from physical damage to the property you own. Such property includes the building where you operate and personal property you use in your day-to-day business. Many bar and tavern owners get property insurance as part of a packaged deal commercial package policy. Bar owners can insure their property based on its actual cash value (ACV) or its replacement cost. The latter’s coverage is more expensive but is a well-rounded investment. Many bar owners are unable to remain in business following a significant loss unless they have this coverage in place.
General Liability Insurance: A general liability policy protects your business against claims or suits brought on by third parties, including patrons, for bodily injury or any property damage they sustain while on your premises. For instance, a claimant may sue your business after they broke their leg from slipping and falling at your bar. Most general liability policies automatically include product liability insurance, which covers claims for bodily injury or property damage that comes from a product you sell. If a customer becomes ill from a drink or food item they purchased at your bar and sues you for bodily injury, this coverage would step in.
Liquor Liability Coverage: General liability doesn’t cover claims against your business that arise from alcoholic beverages’ sale. Such claims are excluded from coverage via the liquor liability exclusion. This is why a bar needs specialized coverage provided by a liquor liability policy. The cost of this coverage depends on many different factors, including the nature of your business, the percentage of total sales, and the state you operate in. In general, you’ll pay more for insurance as your alcohol sales increase relative to your total sales.
Assault and Battery Coverage: If a patron sues your bar after receiving an injury at your staff’s hands, they can turn around and sue you for damages. If the patron brings a claim like this forward, the suit could fall under the “expected or intended injury” exclusion. When buying liability insurance for a bar or tavern, look for a policy that covers assault and battery claims under general liability and liquor liability.

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

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Dayville Office

Phone: (860) 774-8549

394 Lake Rd

Dayville, CT 06241

United States

info@byrnesagency.com

Hours of Operation: Monday- Friday 9:00am-5:00pm

Norwich Office

Phone: (860) 886-5498

6 Consumers Avenue

Norwich, CT 06360