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Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a bar.

Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a bar.

This article will discuss the primary insurance coverage for bars, general liability insurance, as well as additional policies that are appropriate for this industry.

For Bars, General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

Geneal liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: Your weekly booze delivery arrives, and the loading dock door malfunctions, crushing the rear of the delivery vehicle. Your general liability insurance coverage will most likely cover the vehicle damage as well as the cost of replacing the shattered goods.

Example 2: On Wednesday evenings, your club offers dance classes to college students. During your first event, one of the dancers stumbles on some broken glass and falls, bruising her shoulder and elbow severely. Her medical expenditures and any related legal costs in a lawsuit will most likely be covered by general liability insurance.

Example 3: An employee loses control of a huge cart while putting away stage equipment after a live performance. The cart collides with a throng of consumers, injuring many individuals critically. If you resolve their allegations out of court, your general liability insurance would most likely cover their medical bills and any rewards.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

Bars in America pay an average of $500 – $1,200 per year for $1 million in general liability coverage.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Coverage Bars Required

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all bars should have are as follows:

Insurance for Workers’ Compensation

Workers’ compensation insurance will cover an employee’s medical expenditures if they are injured on the job or get extremely sick as a result of a work-related occurrence. Furthermore, if they are unable to return to work, they may be entitled to disability compensation.

Insurance for Commercial Property

You depend on a variety of specialised equipment, furnishings, tools, computer systems, and merchandise to keep your bar operating efficiently. If these objects were destroyed in a fire or other catastrophe, such as a burglary, you may be required to pay for their replacement. Commercial property insurance, on the other hand, will assist pay for these repairs and replacements.

Coverage Options for Some Bars

In addition to the policies listed above, your bar may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Business Interruption

Certain occurrences may necessitate the closure of your doors while repairs are completed. For example, if a fire breaks out at your pub and ruins the dance floor, you’ll have to shut for a few weeks. Business interruption insurance might help you recover part of your lost income during this period of inactivity.

Umbrella Insurance for Businesses

A legal lawsuit or an accident might sometimes deplete your main coverage limits. If this occurs, you may be forced to pay the extra expenses out of pocket. When your main coverage is expired, commercial umbrella insurance takes over.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.