Why Bar Owners Need Restaurant Insurance

Restaurant insurance New York for a bar, nightclub, or any establishment that serves alcoholic beverages is extremely valuable because of the many risks and exposures associated with this particular type of business. As a business owner that sells alcohol to the public, provides entertainment of any sort, or serves food, in addition to a comprehensive insurance program, you will also need very detailed risk management planning in order to mitigate costly lawsuits.


Insurance and risk management planning for a bar or restaurant with a bar requires consideration of the following; what is the value of the property, fixtures and contents of the bar? What percentage of the bar’s sales will be alcohol? Insurers, for example, require evidence of your sales, because generally, if alcohol accounts for 50% or more of the total sales, your exposure is greater which will impact your insurance premium. Therefore, it’s essential you must keep track of this percentage.


Will you have recreational games or diversions at the bar?
If there are any added liability issues your premiums will likely increase as well. For example, many insurance companies do not allow pyrotechnic displays, moon bounces, trampolines, rock walls, swimming pools, or foam machines. If you are considering incorporating these types of activities and equipment be prepared for the additional costs associated with them and be sure to discuss this with an insurance agent who specializes in insurance for restaurants.


Fights and injuries offer more exposures
Let’s face that fact that in some cases, inebriated people will become involved in fights, and customers and employees can be injured during a fracas. State laws differ as to the liability of the bar owner for injury to a third-party caused by an intoxicated patron. You should also discuss this potential liability with a knowledgeable insurance agent in your area.


Food also involves possible health risks
Food at your bar, both cooked and uncooked, can become contaminated, which could result in patrons becoming ill. When meeting with an insurance professional you will want to make sure and review each of these areas of concern and understand the costs involved in protecting yourself and your business in the event of any type of mishap occurring, including food contamination.


Liability insurance is a must


Injuries, illnesses, even car accidents resulting from someone who was perhaps served “too much” to drink while at your bar are just some of the risks that you may face. A comprehensive liability insurance program with the right enhancements will provide you with the coverage you need.  Consult with an insurance advisor to discuss all your operations as a restaurant or bar owner.

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