Public Liability Insurance for you Bar or Nightclub
I would like to talk to you about public liability insurance. Now, I am not a lawyer or an insurance broker and I assume very few in the bar or nightclub business (or thinking of being in it) are educated in these fields either, but part of opening any business is protecting that business from threats to it—including legal threats. Like disaster insurance and liquor insurance, public liability insurance is important for keeping your business from being destroyed by unforeseen accidents that may occur on your premises.
Of course, public liability insurance is not a substitute for safe working conditions and maintaining your premises, but it is a hedge against accidents that may simply be beyond your control.
What is public liability insurance?
Public liability insurance is the kind of insurance that protects you against claims made by those who may be physically (or even mentally) injured on your property. It differs from liquor insurance in that it does not generally cover what happens when possible claimants leave your property. And it does not cover damage to your property. It is strictly a protection for third parties who may be injured.
You will not only need to have public liability insurance in order to protect yourself against claims but also to deal with third parties. Many businesses, such as construction contractors and cleaning companies will not allow their workers to service your property unless you provide evidence of public liability coverage. In addition many states and countries (like the UK) require public liability insurance as part of your bar insurance package in order to get licensed and investors will often stipulate public liability insurance as one of the kinds of bar insurance they expect you to carry in order to protect their investments.
What to look for in your public liability insurance
Not all kinds of pub insurance and bar insurance are created equally. For this reason you should be careful that your pub insurance fully covers you in case a third party should bring a claim. Here are a few things to make sure to have as part of your public liability insurance:
- Full Defense Fees: Some public liability bar insurance policies do not cover your full defense fees or will only allot partial coverage for your defense fees. The cost of defending yourself against spurious claims is often the largest part of the costs you will incur. Your policy should provide you with full legal defense.
- Worker Compensation Insurance: Because they are there more often than any customers, your workers are the ones that are most likely to be injured on your premises and the ones who are most likely to file claims against your establishment. For this reason, even if you happen to be in a state that does not require workers compensation insurance as part of your bar insurance policy package, you should make sure that your public liability insurance covers your workers.
- Product Liability Insurance: You should also make sure that your bar insurance includes “product liability insurance.” Why? No, you do not actually make anything, but if you have a salad bar, serve any kind of food, or even mix drinks, you are liable if your customers are injured by these “products.” The typical example is if customers become sick from food poisoning. Your liquor insurance will cover most other aspects but product insurance will cover the rest.
Where can you get public liability insurance?
You can get public liability insurance from any respectable insurance carrier. It is generally speaking one of the more expensive kinds of insurance that you can get and many factors will affect the cost of your pub insurance. Just as with any other kind of insurance, make sure that your insurance carrier has a solid track record.
What are some signs of a good bar insurance carrier?
- References: They should be able to put you in contact with other clients they have insured so that you can verify they are good insurance providers in the hospitality industry.
- Safety Training: Pub insurance companies that really have their act together will often offer classes that help you to learn how to run a safe establishment. In fact, they will usually give you a better priced policy based on safety measures you take at your establishment.
- Better Business Bureau Rating: Be sure to look them up with the Better Business Bureau to make sure that your bar insurance carrier does not have a bad rating or is not listed. Fly by night operations sometimes jump into the insurance business and then disappear.
If you want to find out more about pub insurance, check out Direct Line For Business Public Liability Insurance.
Filed Under: Bar / Nightclub Business
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