Company insurance is intended to safeguard the financial assets of a business owner and is a crucial investment for a mobile bartender.
This article will discuss the primary insurance coverage for mobile bartenders, general liability insurance, as well as additional products that are appropriate for this industry.
Mobile Bartenders Need 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.
General 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.
Common Situations That A Mobile Bartender’s General Liability Insurance May Cover
Example 1: A visitor was offered two shots of tequila and three beers while bartending at an event. He goes off the road as he leaves the party, colliding with a parked vehicle and a street sign. The motorist was critically hurt, resulting in nearly $60,000 in medical bills, $4,000 in car damage, and $2,000 in damage to the city’s street sign. While each state has its own criteria for what form of insurance would cover this loss, they all agree on one point: a general liability policy must be in place before any coverage will kick in.
Example 2: The event’s host has requested you to bring a speciality cocktail for each visitor to sample. Lemon zest is used in the drink. Unaware of its ingredients, one of the guests takes several sips before learning it includes lemon, which she is very sensitive to. She is taken to the hospital and treated for anaphylactic shock. General Liability insurance would cover your legal expenses in the case.
Example 3: A museum is holding a fundraising event and has hired your firm to provide wine and beer to the attendees. When a visitor leaves the party, he races off the road and collides with a municipal worker who is cleaning up rubbish on the side of the road. His family is suing for medical expenditures, as well as agony and suffering. While other policies may apply, your company must have General Liability coverage to help pay for this loss.
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
For $1 million in general liability coverage, the typical mobile bartender in America pays between $350-$700 per year.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
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 Types of Coverage Required by Mobile Bartenders
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 mobile bartenders should have are as follows:
Insurance for Commercial Vehicles
Because you will be driving your bar on public roads, the state requires you to get a commercial vehicle coverage. Auto insurance covers not only your vehicle but also any liabilities you may have in the event of an accident. Even if you are not on duty, your personal automobile insurance will not protect you if you drive the tow truck.
Insurance for Liquor Liability
Liquor liability insurance, often known as dram shop insurance, is required for anybody selling and/or serving alcohol. It covers medical bills, court settlements, and legal expenditures incurred as a result of the occurrence. To obtain this insurance, you must have underlying coverage in the form of a General Liability policy.
Coverage Options for Some Mobile Bartenders
In addition to the insurance listed above, your mobile bartender may need other forms of coverage based on particular parts 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 Workers’ Compensation
If your towing firm employs anybody (full-time or part-time), you must have workers’ compensation insurance. This form of coverage will assist in compensating your staff if they are harmed on the job.
Insurance for Business Interruption
In the case of a fire, flood, or other natural disaster, your company activities are likely to be disrupted for some time. Business interruption insurance is intended to assist you recuperate a percentage of the income your company would lose if it were unable to function.
This form of insurance is generally included in the policy of a company owner.
Umbrella Insurance for Businesses
Umbrella coverage extends over and beyond the typical limits of your other commercial insurance plans. If you are involved in a significant lawsuit or other claim scenario, the coverage limitations of your regular plans may be inadequate. In this instance, your umbrella coverage will enable you to go above and beyond these restrictions.
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 business is an LLC, look into LLC Insurance.