The local bar is meant to be a place for people to gather, hang out, watch sports, meet people, and have a good time. As great as your bar is, there are a lot of potential dangers and liabilities lurking around every corner.
Having good safety measures will prevent a lot of problems, but when the inevitable happens, good insurance is what keeps you whole and helps you get back to normal as soon as possible.
Here are the types of insurance you need to purchase for your bar.
Property Insurance
Even if you lease your building, you still need property insurance. It covers the building, equipment, inventory, signage, and the rest of your property in the event of a fire, storm, theft, or other covered peril. When given the option in your policy, choose replacement cost coverage. This will pay you the amount you need to replace or rebuild what was lost. When you choose actual cash value, your claim likely won’t pay enough to replace everything, and you’ll have to pay the difference.
Business Income
When your bar closes for repairs after a covered peril, you immediately start losing income. You’re not making any money, and you can’t make payroll. A lot of people, including your vendors, depend on income from your bar. When you have a business income policy, you’ll be paid for your lost income.
General Liability
Wherever people gather, someone will get hurt. If they slip and fall, trip, or have any other accident while at your bar, you could be liable. General liability insurance covers medical payments and property damage for any third party who’s injured while at your bar or working with your business. Your legal costs are also covered if you get sued.
Liquor Liability
You own a bar, so you know what liquor does to people. Because you’re selling and serving that alcohol, you could be held liable for any damage or harm an inebriated person does to themselves or others. Having a policy of cutting people off and calling an Uber or Lyft when someone has too much is a great start. A liquor liability policy protects you when even your best efforts don’t work, and a victim blames your bar.
Cyber Liability
You’re a bar — what do you need with a cyber liability policy? If any of your systems are online, including your payment system or employee files, you’re at risk for a data breach. Hackers don’t care if you’re a big business or a small one. If they can find a weakness and data to steal, they’ll take advantage of it. A cyber liability policy helps you notify anyone affected, deal with any lawsuits, and get help rebuilding your brand and reputation.
Umbrella Policy
Liability coverage is extremely important when you own a bar, but it only takes one bad accident to become a tragedy. A fire or a patron causing a huge auto accident could blow through your entire policy limit and still leave you responsible for even more damages. An umbrella policy pays the rest once you’ve exhausted your liability coverage. You might only need it once, but when you do, you’ll be very grateful you’ve got it.
At Charlotte Insurance, we’ll help you get the right type and amount of insurance for your bar. You don’t have to figure this out on your way. We can help. Request a free quote today!