Owning a bar comes with unique risks, such as alcohol service, crowds, late hours, and expensive equipment. Because of these risks, bar owners face risk exposures most businesses don’t ever face.
Bar Insurance is a comprehensive insurance package designed to protect your business from the financial impact of accidents, lawsuits, property damage, and unexpected disruptions.
This guide breaks down the most important insurance coverages every bar owner should know and have as part of their Bar Insurance portfolio.
From a crowded Friday night to a busy game day, bars can encounter a wide variety of incidents and unexpected issues. Examples include:
Any one of these problems can cause a legal and financial disaster. However, the right insurance coverage helps you absorb these costs, so one incident doesn’t threaten your business or liquor license.
Below are the essential policies that form a complete bar insurance program.
Protects against:
General Liability is the backbone of any business insurance plan. It covers the everyday risks of running a bar and is often required by landlords and vendors.
Protects against:
If your bar serves alcohol, Liquor Liability coverage is essential, and often legally required. It covers legal fees, settlements, and damage caused by customers who were overserved.
Protects against:
Your building, furniture, bar equipment, POS systems, inventory, signage, and improvements.
Commercial Property coverage pays for damage from fire, theft, vandalism, storms, and other covered events. For bars with expensive equipment, refrigeration, or audio/visual setups, this protection is crucial.
Protects against:
With this coverage, your income is protected when a covered loss forces your bar to close.
You get help paying for:
Bars operate on thin margins, but Business Interruption coverage can keep your business afloat after a major event.
Required in most states, this coverage benefits both your employees and your business.
Protects your employees if they suffer:
A Workers' Compensation policy covers their medical bills and lost wages, as well as your employer's liability. Essential for bartenders, servers, cooks, and security staff.
Bars rely on refrigeration, ice machines, draft systems, and kitchen equipment. Food Spoilage & Equipment Breakdown coverage protects you when equipment fails due to:
It reimburses you for the loss of perishable food and beverages, helps your bar make a faster recovery, and lessens your downtime.
Available as an add-on endorsement to General Liability or Liquor Liability Insurance.
Protects against:
When alcohol is involved, there’s always a risk of tempers flaring, leading to incidents. This additional coverage gives your bar an extra layer of protection. Without this endorsement, many bar-related claims may be denied.
Your bar likely relies heavily on POS systems and card payments to run daily operations. If your POS system is hacked or your customer data is breached, it can cost you customers and impact your bar’s reputation.
The policy covers:
Cyber risks are rising quickly, even for small bars. Having Cyber Liability insurance can mitigate these risks and protect your bar and its data.
This coverage protects your bar from employee-related claims such as:
Bars with large staffs or high turnover especially benefit from EPLI, so it’s an important policy to add to your Bar Insurance portfolio.
Pricing varies based on:
Most bar owners benefit from bundling coverages into a Bar Business Owner’s Policy (BOP) for cost savings.
Every bar is different, and sports bars, craft cocktail lounges, nightclubs, and taverns all face unique risks. The right Bar Insurance program protects your customers, employees, and business investment.
To learn how Aegis Insurance & Financial Services can help you secure quality Bar Insurance solutions, contact our office at 713-850-7622 to schedule a consultation. You can also fill out our free quote form on this page to request additional information.