Business insurance is important for your bar. It can cover costs when a drunk guest injures himself or injures others while in the premises. You can also use this to cover bar furniture, equipment, and decors. A bar insurance program covers all the exposures associated with the operations of bar businesses. Read this guide to know what policies are included, how much premiums cost, and the best companies.
Bar insurance protects your bar business against lawsuits, property damage, employee injuries, and more. This is an insurance product that's in the same league as pub insurance. Common insurance policies included in this are general liability, commercial property, and workers' compensation. If you have specialized risks, cyber liability insurance, and other policies can be also added.
Insurance companies underwrite and sell bar liability insurance as a general liability policy and liquor liability policy. The first two sections below discuss how each works.
|Per occurrence limit||$1,000,000||$300,000/$1,000,000||$1,000,000/$2,000,000||$1,000,000/$2,000,000||$1,000,000/$2,000,000|
|Products and completed operations aggregate limit|
|Advertising injury coverage aggregate limit||$1,000,000||$1,000,000||$1,000,000||$1,000,000||$1,000,000|
|Tenant’s legal liability coverage limit||$100,000||$100,000||$5,000||$100,000||$100,000|
|Waiver of subrogation included?||Yes||No||Included||Excluded||Excluded|
|Hired/non-owned auto liability coverage included?||Yes||No||Excluded||Excluded||Excluded|
|Food-borne illness endorsement included?||No||Yes||Yes||Excluded||Yes|
|Can you get a certificate of insurance online?||Yes||Yes||Yes||No||No|
|Name additional insureds?||Yes||Yes||Yes||No||No|
A bar must have general liability insurance to protect itself from lawsuits that customers file after sustaining bodily injuries or property damage.
Bodily injury and property damage claims are very devastating. For example, a bar in Melbourne had to pay $1 million to a customer who got blinded by a pot plant.
Use the table above to see which insurance company offers the best general liability insurance for your bar.
General liability insurance, which is also a common inclusion in nightclub insurance bundles, protects your bar by covering the following expenses if a customer or any other third party files a claim for bodily injuries or property damage:
Reimbursement for property damage
Attorney fees and other legal defense costs
General liability insurance will grant coverage when any of these situations happen in your bar:
A patron slips and falls
Your employee is serving liquor. The glass slips from his hand and it falls. The shards of glass injure the patron
An independent contractor gets electrocuted while maintaining the lighting of your bar
Yes. You’re responsible for the injuries or property damage of persons who get involved in a fight while on the premises of your bar. And so, general liability insurance for bar owners can provide coverage.
General liability insurance can cover claims for food poisoning but not alcohol intoxication. Food poisoning claims can be covered because you can add a food-borne illness endorsement to the general liability policy of your bar.
The food-borne illness endorsement will cover medical treatment and legal defense expenses if a patron experiences an allergic reaction or symptoms of food poisoning after eating your bar’s dishes.
Clients can’t only sustain property damage or bodily injuries because of accidents and barfights. Alcohol intoxication can also be a reason. Moreover, your bar can infringe the liquor laws of the state, city, or municipality where it’s operating. And so, you need liquor liability insurance for bars and taverns.
A liquor liability policy in bar tavern insurance bundles takes care of the cost for medical treatment, legal defense, reimbursement for property damage, and other legal expenses if any of the following happens:
A patron loses consciousness or suffers breathing difficulties because an employee overserved him or her with alcohol
Your bar negligently sold alcoholic drinks to minors
An intoxicated patron injures himself while dancing at the dance floor of your bar
An intoxicated patron injures other patrons
A liquor liability policy is an insurance required for bars. States, cities, and municipalities might not grant a business permit if you don’t have this. To ensure that you comply with the mandated minimums, see to it that you have a $1 million-$2 million liquor liability insurance. If you're planning to hire an independent bartender, see to it that he or she has a liquor liability policy where you can be named as an additional insured.
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|Building coverage limit (minimum)||$50,000||$25,000||$25,000/$500,000|
|Contents coverage limit (minimum)||$50,000||$25,000||$25,000/$500,000|
|Money and securities||Excluded||$2,500||$1,000|
|Lock and keys||Excluded||$2,500||Excluded|
|Business interruption floater||Excluded||Included||Included|
|Equipment breakdown floater||Excluded||Included||Excluded|
|Inland marine insurance floater||Excluded||Excluded||$10,000|
|Employee dishonesty floater||Excluded||$5,000||$2,500|
Your bar is prone to fire. The liquor stored inside it can easily catch a spark and cause a large flame. Of course, there is a lot of lighting and this can overload the circuit. It’s also possible for someone to throw a lit cigarette butt in the trash can.
Building a bar costs $110,000 or more. This is why it’s important to include a commercial property policy in your cocktail bar insurance. Use the table above to see which insurance company offers the best commercial property insurance for bars.
A commercial property policy is the bar business insurance that will cover the actual cash value or replacement cost of your bar’s building if it gets damaged or destroyed due to:
Yes. Commercial property insurance for bars and nightclubs doesn’t only cover the building but also the liquor and other stocks. That said, you can receive reimbursement for losses if your stock is damaged or destroyed because of the above-mentioned perils.
A food spoilage endorsement, which is a common inclusion in pub and bar insurance programs, will reimburse the estimated value of food ingredients and other perishable stocks that spoiled or got damaged because of power outage, pests, and equipment breakdown.
|General liability aggregate limit||$2,000,000||$1,000,000/$2,000,000||$300,000/$1,000,000|
|Commercial property coverage limit||$50,000||$25,000/$500,000||$25,000|
|Optional policies can be added?||Yes||Yes||Yes|
|Name additional insureds for free?||Yes||Yes||Yes|
A business owner’s policy is usually included in small bar insurance bundles. This insurance is made by combining general liability insurance and commercial property insurance. You’re eligible for a BOP if you’re the owner of a growing startup bar business. Use the table above to see which insurance company offers the best business owner’s policy for bars.
Since it’s a combination of general liability and commercial property insurance, your bar can use a business owner’s policy to:
Pay for medical treatment, property damage reimbursement, legal defense, and other resulting costs if a claim for bodily injury or property damage is filed
Recover financial losses if your bar’s building, stocks, and equipment gets damaged or destroyed
Yes. This bar insurance policy can be added with cyber liability, customer property endorsement, non-owned/hired auto liability coverage, product liability coverage, and others depending on which insurance company you work with.
|Covers hired and borrowed equipment?||$3,000/$10,000||$2,500/$5,000||$50,000|
|Miscellaneous equipment also covered?||$5,000/$10,000||No||Yes|
|Offered as an endorsement to general liability insurance?||Yes||Yes||Yes|
Your bar can’t run without specialty tools and equipment. For making food, you need ovens, grinders, stoves, and mixers.
To keep things clean and orderly, you need hand sanitizers, vacuum cleaners, and mops. Of course, we must not forget the things you need to serve beverages such as ice crushers, ice machines, and dispensers.
The tools and equipment for your bar are pricey without a doubt. Cover all of them through tools and equipment insurance. Use the table above to see which insurance company offers the best tools and equipment insurance for bars.
Tools and equipment insurance is the insurance policy that will refund the value of bar equipment in case of damage or cover the repair expenses in case of destruction caused by the following perils:
Tools and equipment insurance don't cover factory defects. The same goes for normal wear and tear. If you discovered the factory defect early, we suggest you return it to the retailer or manufacturer and make use of its warranty.
Work-related injuries are one of the most common and costly exposures for bars and any other businesses. The bureau of labor statistics assumes a 3.6 incidence rate per full-time worker. Moreover, it’s estimated that business owner’s spend $1,100 for each worker injured.
It’s smart to get workers' compensation insurance so that your bar can provide adequate compensation when an employee sustains a work-related injury or illness. Moreover, your bar needs this to comply with the regulations that all employers must follow.
Workers' compensation insurance will kick in if any of these happens in your bar:
An employee is injured by a drunk customer
An employee sustains burns while cooking
An employee gets wounded while using a cooking equipment
An employee slips and falls while serving food and drinks to customers
An employee gets involved in a vehicular accident while doing deliveries for your bar
No. The local musicians you hire are considered as independent contractors. The worker's compensation policy of your restaurant and bar insurance bundle only insures part-time and full-time employees.
Include a commercial auto policy in your bar restaurant insurance bundle if you own a commercial vehicle that employees use to deliver food and haul stocks from local suppliers. This insurance will cover:
The medical treatment of third parties who got injured in a vehicular accident caused by your bar’s commercial vehicle
The repair of your bar’s commercial vehicle if it got damaged because of a collision, fire, theft, vandalism, weather, and other covered perils
The employee’s medical treatment if he or she gets involved in an accident while driving your bar’s commercial vehicle
Are you afraid of completely draining the funds of your general liability or liquor liability policy? If yes, then purchasing excess liability insurance will give you peace of mind.
Excess liability insurance is a coverage that extends the limits of your general liability or liquor liability policy. That said, this one doesn’t cover any claims filed by anyone against your business.
Here’s an example for you to understand. Say a customer files a $3 million claim against your bar. Your general liability policy only has $2 million. There’s still $1 million left to be covered, and excess liability insurance will cover this remaining amount.
Your juice bar certainly uses a POS machine and a computer to process, record, and track sales. If you’re into digital marketing, then your bar also has a website.
The sensitive information collected by your POS machine, computer, and website can be leaked due to cybersecurity issues or cyberattacks. If this does happen, cyber liability insurance will grant help by covering the following costs:
Credit and fraud monitoring
Professional services for fixing and containing the data leak
Legal expenses if affected customers decide to sue
Employment practices liability insurance takes care of legal defense costs and court judgments if an employee of your bar files a claim after experiencing sexual harassment. Claims for wrongful termination, retaliation, negligent hiring, failure to promote, exploitation, and other violations of employee rights are also covered.
If your bar’s activities are centered on drinks and the live viewing of sports events, then a sports bar insurance program provides the most comprehensive protection. Policies included are general liability, commercial property, product liability, liquor liability, commercial property, and assault and battery insurance.
Mobile bar insurance is an insurance program catered for bar owners who do business through customized trucks, trailers, and other vehicles that can be used as a food establishment on wheels.
Policies that comprise this are general liability insurance, liquor liability insurance, and commercial auto insurance.
The general liability policy of mobile bar insurance has a business equipment endorsement and inland marine endorsement.
On the other hand, the commercial auto policy comes with a mobile bar trailer insurance endorsement, which takes care of costs if the trailer attached to the vehicle sustains damage because of fire, theft, vandalism, and other covered perils.
A juice bar insurance program is a coverage for bars that specialize in fruit and vegetable beverages. Common policies included in juice bar insurance are general liability, commercial property, workers' compensation, commercial auto, and equipment breakdown insurance. Premiums cost $53 per month or $636 per year.
|Cost per Month||Cost per Year||Deductible|
|General liability insurance||$180||$2,160||$0-$500|
|Liquor liability insurance||$215||$2,580||$500-$1,000|
|Commercial property insurance||$250||$3,000||$1,000-$2,500|
|Business owner’s policy||$300||$3,600||$500-$1,000|
|Workers compensation insurance||$210||$2,520||$2,000-$5,000|
|Commercial auto insurance||$190||$2,280||$1,000|
|Umbrella liability insurance||$182||$2,184||$500-$1,000|
|Cyber liability insurance||$195||$2,340||$1,000|
|Employment practices liability insurance||$220||$2,640||$500-$1,000|
The average bar insurance cost is $180 per month or $2,160 per year for a $1 million general liability policy. Business size, business history, number of employees, the specific activities, claims history, and location are some of the factors that affect the bar insurance cost. Consider doing these things to reduce the cost of insurance for a bar you own or manage:
Have a working risk management strategy that’s designed by consultants
Bundling two or more insurance policies
Avail policies as endorsements if possible
To give you a further idea of the insurance cost for a bar, we made this table showing the premiums for a $1 million general liability insurance from the best companies:
|Cost per Month||Cost per Year||Best for|
|NEXT||$100||$1,200||Best overall; Fastest general liability insurance for bars|
|Tivly||$100||$1,200||Comparing bar insurance quotes over the phone|
|Thimble||$100||1200||On-demand coverage for bars|
|CoverWallet||$110||$1,320||Comparing bar insurance quotes online|
|GEICO||$115||$1,380||Existing GEICO policyholders who own a bar and want a coverage for their business|
|FlIP||FLIP doesn’t state the average cost of its general liability insurance for bars||FLIP doesn’t state the average cost of its general liability insurance for bars||Tools and equipment insurance for bars|
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Work with the right insurance company and you’ll enjoy comprehensive coverage at a justifiable price. Here are some reviews of the best bar insurance companies. Read to know their pros, cons, and cost of a $1 million general liability insurance.
Issues an online proof of insurance instantly
Fastest general liability insurance for bars
Great customer service and reputation
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT covers bar businesses that have recently started or are beginning to pick their pace. But note that due to the intricate exposures in the food and beverage industry, NEXT partners with Tivly to protect your business. Policies you can get from this bar insurance company are general liability, commercial property, business owner’s policy, workers compensation, and more.
Best for: Best overall; Fastest general liability insurance for bars
Average cost: $100 per month
Our rating: 10/10
Compare bar insurance quotes online
Easy online policy management
Name landlords as additional insureds
Cancel your policy anytime with no charges
Not an insurance company but an insurance broker
CoverWallet is an insurance broker that helps you find the best coverage for your bar business through its online quotes comparison platform. Use this then provide some basic details and you’ll be able to see the quotes of different insurance companies.
The quotes from this bar insurance brokerage feature a $1 million general liability insurance, $50,000 commercial property insurance, workers compensation insurance, commercial auto insurance, and a business owner’s policy.
Best for: Comparing bar insurance quotes online
Average cost: $110 per month
Our rating: 10/10
Compare bar insurance quotes over the phone
Responsive customer service
A partner of many insurance companies
You need to call to get a quote
Tivly (formerly CommercialInsurance.NET) works with NEXT, Thimble, and other insurance companies to cover bars. Policies you can get from this company are general liability, commercial property, workers compensation, cyber liability, and more. You can request a quote online. However, the limits and other features of your coverage will be discussed by an agent. That said, call Tivly now to compare quotes over the phone.
Best for: Comparing bar insurance quotes over the phone
Average cost: $100 per month
Our rating: 10/10
Specializes in food and beverage businesses
Hefty tools and equipment insurance limits
Numerous add-ons to your policy
Add-ons are very pricey
FLIP’s bar insurance offers a $2 million general liability and liquor liability policy. At an additional cost, you can include cyber liability, tools and equipment, excess liability, and other policies to your insurance bundle.
Best for: Tools and equipment insurance for bars
Average cost: FLIP doesn’t state the average cost of its general liability insurance for bars
Our rating: 10/10
Sells an event insurance package for bars
Issues an online certificate of insurance
You can’t reach customer service by calling
Similar to NEXT, Thimble works with Tivly to grant insurance coverage for bar businesses. If your bar hosts commercial events from time to time, Thimble is a good choice because it offers an events insurance plan that can be canceled any time.
Best for: On-demand coverage for bars
Average cost: $100 per month
Our rating: 9/10
Discounts are available if you’re an existing GEICO customer
Quick to issue online quotes
Easy to file a claim online
Your bar insurance quote might come from a third party
GEICO offers general liability, commercial property, business owner’s policy, cyber liability, workers compensation, and commercial auto insurance for bars. What makes GEICO great is if you’re an existing policyholder, you’ll enjoy a discount for the premiums of the policies we mentioned.
Best for: Existing GEICO policyholders who own a bar and want a coverage for their business
Average cost: $115 per month
Our rating: 9/10
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!