As someone who owns or manages a bar, it’s important to have proper insurance in place to protect your business and the people who work there.

If you don’t have the right bar insurance in place and one of your employees causes an injury while they’re working, they could file a lawsuit against you personally if you don’t have the right insurance in place to cover their injuries and medical expenses.

This can become costly very quickly as lawsuits are expensive, and if you don’t have the right insurance coverage in place, you could be held personally responsible for the costs related to this lawsuit.

What Is Bar Insurance?

If you’re opening a bar, one of your main concerns is going to be keeping it safe for customers. This isn’t just about accidents and drunk patrons; anyone who gets injured or feels that they were sexually harassed in your establishment can sue you for their pain and suffering (among other things).

To protect against these types of lawsuits, businesses usually carry what’s called bar insurance, which will pay out legal fees and other damages if someone sues.

However, there are two different types of bar insurance:

Employer’s Liability Insurance or Commercial General Liability. What’s The Difference?:

Employer’s liability is for bars that employ staff (bartenders, waiters/waitresses, etc.)—it covers you if one of your employees gets injured on the job and someone sues you for it.

Commercial general liability is for bars that don’t employ staff; instead they hire independent contractors (for example a bartender who works at multiple bars). If one of these bartenders gets hurt on your premises and someone sues you for it, commercial general liability will cover those legal fees.

It’s important to note that bar insurance doesn’t cover everything—you still need to take steps to keep your customers safe by ensuring you have adequate security and safety measures in place.

What Types of Coverage Are Included in a Commercial Liability Policy?

A commercial liability policy is a type of business insurance that covers certain legal issues. Unlike personal liability insurance, which focuses on injuries sustained by an individual (i.e., medical payments coverage and PIP coverage), commercial liability insurance offers protection for a variety of legal situations, including those related to your business property and operations and those that arise when you’re doing business with other companies or individuals.

Commercial liability policies typically include four main types of coverage:

General Liability, Commercial Property Damage, Personal & Advertising Injury, and Medical Payments.

Each kind of coverage protects your assets against specific liabilities but does not offer protection for your general office operations or clients.

Does My Startup Need Bar Insurance?

Every year, thousands of business owners think they’re going to get sued and spend tens of thousands of dollars on insurance they don’t need. Before you go down that road, take a moment to think about whether your company actually needs bar insurance.

How much money could you lose if you’re hit with a lawsuit? Do you have liability insurance? Are there any loopholes in your existing policies that could leave your business exposed? If you’re really sure that bar insurance is what you need, then it’s time to do some research.

Who Needs To Know About These Coverages?

The first step to protecting your business is finding out what you need to protect it.

That’s why many experts recommend having an attorney evaluate your insurance coverage, or even just sit down with you and walk through a worst-case scenario.

What happens if a patron gets hurt on your property? What if one of your employees gets hit by a car while walking home from work? You may not think those kinds of things happen frequently, but accidents do happen—even in establishments that sell alcohol.

Do I Need More Than One Type of Commercial Liability Coverage?

If you own a bar or other type of restaurant, your business might be at risk for a number of possible injuries and incidents. As a result, there are many types of liability insurance policies you may want to consider purchasing.

Typically, your first step should be to determine whether or not you’re required to purchase certain coverage. The second step is determining what types of coverage will best protect your business and its assets.

Keep in mind that liability insurance doesn’t just provide protection from accidents; it can also help protect your company if you’re sued because someone feels that they were wronged in some way.

What Else Should I Consider Before Buying Commercial Liability Insurance?

Although commercial liability insurance is designed to protect your business from lawsuits, it’s still a good idea to consider whether or not you need additional coverage before purchasing an insurance policy.

If you work with hazardous materials (like chemicals) in your bar, for example, it might be a good idea to purchase property damage and other types of insurance as well. Discussing your business with a commercial insurance broker can help you make sure you’re protected in every area of your operation.

Final Thoughts

Image by hazan aköz ışık from pexels

If you are starting a new business, it’s smart to purchase bar insurance for your newly opened business. With so many different areas of liability, it is important to have coverage in place. Instead of adding more risk to your brand, help protect yourself against unknown threats with one simple phone call.