How to Protect Your Bar with Insurance - dummies

How to Protect Your Bar with Insurance

By Ray Foley, Heather Dismore

The law requires you to obtain certain kinds of insurance for your bar. The amount of coverage you carry and the deductible (which is the amount you’re required to pay before your insurance kicks in) you choose affect the amount of your premiums (or the amount you pay for your insurance).

Talk with your insurance agent to find the best, most appropriate coverage for your business.

Here is a list of common business insurance coverage:

  • Property: Property insurance protects your property in the event of damage. Many policies only cover specific damages. You may want to consider additional coverage that you add to your policy, called a rider, like earthquake, flood, wind, and hail insurance, if those natural disasters are likely in your area.

  • General liability: Liability insurance protects you in the event that someone sues you for something. Maybe a customer chipped a tooth on a beer bottle, cut his finger on a broken glass, or fell off a bar stool.

    Check your lease for any required minimums for liability insurance. Your agent should give you recommendations for how much liability insurance you should carry, based on the assets of your business.

  • Liquor liability: When you get your liquor license, check with your local agency to see what amount of liquor liability insurance you need.

  • Workers’ compensation: Usually called workers’ comp, this insurance takes care of medical bills for your employees who get injured on the job.

  • Unemployment insurance: If you fire an employee or have to lay some of your workers off for business reasons, this insurance pays your out-of-work, ex-employees until they find another job.

The federal government requires workers’ comp and unemployment insurance. Protect what you have with the right insurance. See your agent for the best coverage for you.