The pub and bar service industry is considerably lucrative. These establishments cater to both the social and dining needs of a wide swath of the population. As with any business, bar owners face dangers specific to their industries.
In the alcohol service industry, there are many unique, customer-related risks. Many of these risks relate to liquor and food consumption at the bar. To guard against financial loss through liability claims, bars should have several important forms of insurance coverage in place.
Specialty Liability Coverage for Bars
When insuring your bar or tavern, you will likely want general liability coverage. Liability coverage can protect the establishment when its negligence harms a customer. For example, a let's say a client slips on a wet floor and breaks a leg. General liability coverage might help the bar compensate the injured party for lost income, pain and suffering or medical bills.
General liability insurance likely won't cover every risk associated with your bar. You'll still need workers compensation to cover employee injuries, and employer's protective liability to guard against sexual harassment, wrongful termination and similar issues that could also be the source for financial loss.
Additionally, you might need to expand your liability coverage with several specialty policies. These may include:
- Liquor Liability Insurance: If an intoxicated person injures someone else or damages their property, the victim might turn to the bar for compensation. The bar can be held responsible, since they served alcohol to the perpetrator. Liquor liability insurance can help the bar pay for damage caused by intoxication. However, it might not cover instances of assault and battery. If a brawl breaks out in the bar, you might need assault & battery protection.
- Product Liability Coverage: You strive to serve good food and good drinks. However, there's always a chance that service might fall short. For example, someone could become sick after eating poorly prepared food. If this happens, you might have to pay the medical bills or other fees for the injured party. Product liability coverage might help you do that.
Keeping Your Bar Safe
When running a bar, you have to see to clients' satisfaction. This includes keeping an eye for their safety. You must maintain a professional environment to keep patrons happy.
- Maintain all your liquor and food service licensing. Follow all health code standards regarding service, storage, hygiene and preparation.
- Hire only licensed trained staff to serve alcohol to customers.
- Keep your liquor, spirits and food in safe spaces.
- Know when to refuse service to intoxicated clients. Most restaurants retain this right. You should have safety procedures in place to assist intoxicated persons.
These are just a few of the rules towards keeping your clients safe. Bar owners must keep an eye on their establishment at all times. With the right help, you can keep your liability risks low.
Got questions about coverage for your bar, tavern or restaurant? Southwest Commercial Insurance can help. Contact us today to get started.