Let’s be real; most people don’t hit up a nightclub for fine dining and conversation. You know it, we know it. But that doesn’t mean you should skip out on purchasing insurance. When alcohol is involved, and most times it is, accidents are bound to happen.
Think about a typical Friday night at your club. You’re bound to run into a few slip-and-falls, liquor liability issues, and maybe even property damage (hey, it happens!).
Restaurant insurance doesn’t just cover food poisoning and allergic reactions. Instead, it provides coverage for the myriad of issues you could run into as a nightclub owner.
What is Restaurant Insurance?
Also known as Bar Insurance or Food Service Insurance, Restaurant Insurance is a policy package designed to protect those who serve and sell food and alcohol. As you know, if you’re serving alcohol, you must also serve food. So, technically speaking, every nightclub is a restaurant, and every restaurant needs insurance.
Restaurant Insurance for Your Nightclub
Much like the entertainment industry, insurance coverage varies. At the very least, a comprehensive insurance policy for nightclub owners will typically include:
- Commercial General Liability Insurance (CGL): This is the most basic insurance policy around. Commercial General Liability Insurance (CGL) protects against claims alleging damage to third-party property or bodily injury, such as a slip-and-fall injury.
- A slip on a spilled drink could spell trouble for you as a nightclub owner should the patron decide to sue. If you are successfully sued, CGL could cover the cost of damages and associated medical expenses. Even if the charges are dropped, legal defense is expensive and not something most people want to pay for out-of-pocket.
- Liquor Liability Insurance: Your bartenders know not to serve anyone to or past the point of intoxication, but pre-gaming exists. As a nightclub owner, you have little control over how much your patron’s drink before they arrive. However, you do have control over whether or not you protect yourself with Liquor Liability Insurance in the event you are held liable for an alcohol-related accident or injury.
- As a business owner, you’re responsible for your customers and employees when serving alcohol. This insurance policy covers claims involving your employees, the use of excessive force (hello, security!), and incidents involving intoxication.
- Commercial Property Insurance: Sometimes, a party gets out of hand, and the next thing you know, your patrons have torn up the dance floor. Commercial Property Insurance covers commercial and rental property, as well as your business assets and equipment. From fire damage to a stolen bar sign, Commercial Property Insurance covers the cost of loss or damage, including theft.
How Do I Make The Most Of My Restaurant Insurance?
Much like the entertainment industry, insurance coverage varies. Based on the type of nightclub you own (e.g., lounge, live music venue, dance club), you may wish to add extra coverage to protect your business entirely. Speak with your broker about customizing your policy to meet your specific business needs, with additional policies such as:
- Employee Theft Insurance: As the name suggests, Employee Theft Insurance protects your business against property theft by an employee. This coverage includes money, forgery, and other physical assets (but not computers). Having this coverage doesn’t mean you don’t trust your employees, but it’s always better to be safe than sorry.
- Equipment Breakdown Insurance: It happens to the best of us and is nearly impossible to plan for, a breakdown of the electrical equipment causes the power in your club to go out. Equipment Breakdown Insurance protects against losses resulting from the sudden and accidental breakdown of equipment required to run your business.
- Business Interruption Insurance: This insurance covers net income lost following an insured event, such as a fire or flood, which requires your club to be shut down temporarily while repairs are made. You’d hate for it to happen, but hate it even more if you didn’t have insurance to cover the damages.
You and your bartenders follow many rules to make sure your patrons are safe. Why wouldn’t you protect your business with restaurant insurance?
Cleaning up after a night out can be stressful, but your insurance doesn’t have to be.
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