Bar theft insurance and other employee related insurance like worker’s compensation may seem like an unnecessary hassle, given how many insurance plans you may already be dealing with, but most bars find that they must carry various kinds of insurance related to their workers.
So what should you carry?
Theft Insurance for Bars?
Theft is a common problem for many bar owners. Employees will often steal drinks or make off with bottles from the inventory room. These kinds of smaller kinds of theft will definitely add up, but usually this is more of management problem.
This is not the kind of theft that you need bar theft insurance to handle. Theft insurance for bars has more to do with larger theft problems, such as having your bar looted, burglarized or robbed. These larger types of theft problems cannot be prevented as easily by security measures (though such security can help ward off some attempts). Security cameras, alarm systems and vigilance can help with these concerns, but the wise owner will also look to get some insurance as well.
Many bar and nightclub insurance policies will carry theft insurance as part of their property insurance coverage. However, you need to be careful since much Commercial Insurance for a Bar or Nightclub do not carry full theft provisions. For example, some insurance policies may not cover a theft that is initiated and carried out by your employees, which studies show are the vast majority of such episodes. Here is a brief checklist of the kinds of theft your insurance policy should cover:
- Employee Related Thefts: Since most thefts involve an employee at some stage, an insurance policy that does not cover employees is virtually worthless.
- Armed Robbery: Although most bar theft insurance policies cover armed robbery, some will sell it as extra especially if you are in a particularly dangerous area.
- Louting: Many people are surprised to learn that louting may not be covered in their nightclub insurance policies. Louting is sometimes sold separately as a form of Disaster Insurance for Bars and Nightclubs. Be sure to check if louting is included and decide whether it is worth paying extra for it.
Of course, bar theft insurance is not the only kind of insurance for bars and nightclubs that you need to deal with when it comes to your employees. Your small business insurance package will also have to have other kinds of bar and nightclub insurance specifically related to your employees. In some cases these kinds of insurance should be a part of other kinds of insurance that you carry.
Workers Compensation Insurance
One of the main kinds of Public Liability Insurance for your Bar or Nightclub that you should carry is some form of workers compensation insurance. Many bar and nightclub owners simply miss aspects of this kind of small business insurance when they begin hiring employees. Given the litigiousness of our society however, it is important to that you include workers comp as part of your liability insurance since any slip, brawl or kitchen accident can lead to crippling medical costs for a small bar or nightclub that is uncovered.
In addition, workers compensation insurance is often a necessity for contractors doing work on the premises of your bar or nightclub as well. Many will simply not allow their workers onto your site if you do not provide proof of your policy.
Other Kinds of Insurance Related to Bar or Nightclub Employees
As I mentioned in Liquor Liability Insurance article, making sure to include your employees on your bar and nightclub insurance policy is crucial to your policy since it is fairly common for employees who work at bars and nightclubs to take part in the festivities there as well.
Other areas that employers often forget is in private company vehicles. If you send employees to a site either for catering or picking up supplies and that employee drives the bar van, then it is important that you have your driver covered by your small business insurance policy.
If you operate a very large bar or set of bars (over 50 employees), it will likely be necessary that you also provide them with health insurance. Generally speaking the larger you are the better leverage you have for finding an affordable group policy.
Tip from the Pros: One good way to save on insurance policies is to make sure your employees take part in any programs that your insurance provider may provide in conjunction with their policies. Making sure your employees take part and that you comply with safety measures in your establishment will often qualify your establishment for lower bar and nightclub insurance fees. Be sure to ask your insurance provider about such programs.
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