Bars, taverns, restaurants and nightclubs face unusual risks. If you own or work at one of these establishments, understand your risks and the risk management insurance you need.
Potential Risks for Bars, Taverns, Restaurants and Nightclubs
While every business is slightly different, there are common risks bars, taverns, restaurants and nightclubs face. They include:
- Liability if guests or employees fall, slip or are injured
- Liquor Liability if a guest drinks too much and causes an accident or other liability
- Food Contamination
- Fire Hazards
- Increased Pollution Liability Regulations
- Theft
- Assault and Battery
Why Purchase Risk Management Insurance?
Because the risks are high for your bar, tavern, restaurant or nightclub, you need insurance. It covers any injuries, illnesses or liabilities that occur on your property.
Insurance also helps protect your personal assets if you are sued and can provide resources to handle claims or legal costs related to incidents on your premises.
How to Purchase Risk Management for Bars, Taverns, Restaurants and Nightclubs
Restaurants Excess Liability can help cover large liability claims that exceed standard policy limits, and specialized coverage is available for other exposures such as lost items and coatroom incidents at busy venues like restaurants and clubs.
For coverage focused on items left in customer care areas, see Checkroom Liability Insurance for Restaurants.
- Neighborhood bars, pubs and taverns
- Restaurants with high-percentage alcohol sales
- Craft brewpubs
- Sports bars
- Nightclubs and discotheques
- Wine bars
- Cocktail lounges
- Comedy clubs
- Fraternal Organizations
To ensure you get adequate coverage for your needs, talk to your agent about details specific to your establishment.
Factors like how long your employees have worked in the industry and the types of guests you serve can affect the type of insurance you purchase and your insurance premiums.
Ways to Decrease Your Risks
To reduce your risks, protect your staff and patrons, and potentially lower your insurance premiums, follow a few steps.
- Enroll managers, servers, door hosts, bouncers and all employees in regular training courses that teach legal responsibilities when serving alcohol, how to recognize and prevent intoxication, and food safety.
- Hire experienced staff. Experienced employees are less likely to engage in risky behavior and some insurers offer lower rates for establishments with staff who have longer industry experience.
- Card everyone to avoid serving minors.
- Limit free drink giveaways so you don't encourage intoxication.
- Establish protocols for handling inebriated guests, such as arranging safe transportation or refusing further service.
- Be vigilant about reducing risks: keep floors clean, follow safe food guidelines, make repairs promptly, ensure adequate outdoor lighting and take other steps to reduce hazards around your establishment.
When you understand risk management for bars, taverns, restaurants and nightclubs, you can take the necessary steps to protect your employees and patrons. Talk to your insurance agent for more ideas on managing and reducing your risks.
Frequently Asked Questions
What types of insurance should a bar or restaurant consider?
Most establishments consider general liability, liquor liability, property, and workers' compensation; additional specialty coverages may be needed depending on services and exposures.
How can I reduce liquor liability risks?
Train staff on responsible service, card patrons to verify age, limit giveaways, and have clear protocols for handling intoxicated guests.
Will general liability cover a foodborne illness claim?
General liability may cover some claims related to foodborne illness, but the specifics depend on your policy language and limits; discuss claim scenarios with your agent.
Are assaults by patrons covered by insurance?
Assault and battery exposures can be covered under certain liability policies or endorsements, but coverage often depends on the circumstances and policy terms.