Restaurants, Bars, Taverns, and Nightclubs
A Business Owners Policy (BOP) is the ideal policy for most restaurants. A BOP usually provides General Liability, Property coverage, limited Liquor Liability coverage (depending on how much liquor is sold) and other types of coverage helpful to comfortably operate your business. Some factors that may exclude a restaurant from eligibility in purchasing a BOP are things such as high liquor sales vs food sales, live entertainment, type of entertainment, and table side cooking. A BOP however, is very rarely the appropriate policy for bar or tavern operations. If you own or operate a bar or tavern and find that you have a BOP, call us ... you probably are paying for insurance and have do not have the correct coverage - think of it as owning a sports car and insuring it as a pick up truck
Bar and Tavern insurance is different than restaurant insurance because of the alcohol to food percentage being greater than 40%, have different hours and different types of entertainment. The experts at Southwest Nexus Insurance Managers, LLC will help you make sense of the complicated world of insurance and make sure that you have the correct coverage. We have been helping owners of small bars to large multi-state nightclub operations protect their assets with over 20 combined years of experience.
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An unfortunate truth is anyone can sue you for any reason. When you own and operate your own business, especially a place that serves alcohol, the risk of being held responsible is much greater. Having the correct insurance will provide coverage to defend you and your business against nuisance and frivolous claims ..... the duty to defend should be part of your insurance policy.
General Liability Insurance is perhaps the most common type of coverage for a business. This is typically referred to as the "slip and fall" coverage. It's primary purpose is to protect the interest of the business owner against claims brought by customers or other non-employee injured parties. It typically provides coverage for bodily injuries and property damages if a customer is injured in your bar or outside property, such as the parking lot. Oftentimes, bar insurance policies exclude general liability coverage if the customer involved was injured due to intoxication after being served in your establishment.
Liquor Liability Insurance is a MUST for Bar and Tavern operations. The primary source of revenue for a Bar or Tavern is the sale of alcoholic beverages. This coverage extends to claims occurring after a patron has left your business.
Assault & Battery Liability Insurance: A large number of insurance claims in bars, taverns, and nightclubs arise due to fights or assault. These events are often excluded in the General Liability and Liquor Liability policies, so including Assault and Battery Liability Insurance in your policy is strongly recommended.
Product Liability Insurance
Many bars also serve food, even if it’s just popcorn and pre-package food items. If the items you provide to your customers is tainted and causes your customers to get sick, you may be held liable for those persons injury.
Also referred to as Excess Liability Insurance helps to cover loses that exceed the limits of liability on your policy.
Business Property Coverage must be considered on a case by case basis, but the idea is that it will provide coverage for those material items owned by the business. This could vary widely depending on who owns the building, the contents, or any improvements made by a tenant to a property - such as a patio. Review your lease to make certain you are in compliance.