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Bar Insurance: Cost, Liability & Quotes From $11/mo

For your business best protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!


For your business best protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

Table of contents
1. What is Bar Insurance?2. Bar Liability Insurance3. General Liability Insurance for Bars 3.1. How Does General Liability Insurance Protect Your Bar?3.2. At Which Specific Incidents Can You Use General Liability Insurance?3.3. Will General Liability Insurance Cover Bar Fights?3.4. Does General Liability Insurance Cover Claims for Food Poisoning and Alcohol Intoxication?4. Liquor Liability Insurance for Bars4.1. How Does Liquor Liability Insurance Help Your Bar Business?4.2. Is Liquor Liability Insurance a Requirement for Running a Bar?5. Commercial Property Insurance for Bars 5.1. How Does Commercial Property Insurance Work?5.2. Are The Liquors I Sell Also Covered?5.3. What is a Food Spoilage Endorsement to Your Bar’s Commercial Property Insurance?6. Business Owner’s Policy for Bars6.1. How Do You Use a Business Owner’s Policy?6.2. Can a Business Owner’s Policy Have Add-ons?7. Tools and Equipment Insurance for Bars 7.1. What is Tools and Equipment Insurance?7.2. I Bought Equipment for My Bar That Has a Factory Defect? Will Tools and Equipment Insurance Cover This?8. Workers' Compensation Insurance for Bars8.1. When Can Your Bar Use Workers Compensation Insurance?8.2. Does Worker's Compensation Cover the Local Musicians I Hire for Nightly Gigs in My Bar?9. Commercial Auto Insurance for Bars 10. Other Insurance Policies to Purchase10.1. Excess Liability Insurance for Bars 10.2. Cyber Liability Insurance for Bars10.3. Employment Practices Liability Insurance for Bars11. Sports Bar Insurance12. Mobile Bar Insurance13. Juice Bar Insurance14. Bar Insurance Cost15. Best Bar Insurance Companies 15.1. NEXT Bar Insurance 15.1.1. Pros15.1.2. Cons15.2. CoverWallet Bar Insurance 15.2.1. Pros15.2.2. Cons15.3. Tivly Bar Insurance 15.3.1. Pros15.3.2. Cons15.4. FLIP Bar Insurance 15.4.1. Pros15.4.2. Cons15.5. Thimble Bar Insurance 15.5.1. Pros15.5.2. Cons15.6. GEICO Bar Insurance 15.6.1. Pros15.6.2. Cons

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. 

What is Bar Insurance?

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.


Bar Liability Insurance

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.


General Liability Insurance for Bars


CoverWalletNEXT (Best)ThimbleGEICOFLIP
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
Aggregate limit$2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000
Products and completed operations aggregate limit
$2,000,000
$1,000,000$1,000,000$1,000,000$1,000,000
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?YesNoIncludedExcluded
Excluded
Hired/non-owned auto liability coverage included?YesNoExcludedExcluded
Excluded
Food-borne illness endorsement included?NoYesYesExcludedYes
Can you get a certificate of insurance online?YesYesYesNoNo
Name additional insureds?YesYes
YesNoNo
Deductible$0$0$0$0$0


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.


How Does General Liability Insurance Protect 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:

  • Medical treatment

  • Reimbursement for property damage

  • Settlements

  • Attorney fees and other legal defense costs

  • Court judgments


At Which Specific Incidents Can You Use General Liability Insurance?

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


Will General Liability Insurance Cover Bar Fights?

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.


Does General Liability Insurance Cover Claims for Food Poisoning and Alcohol Intoxication?

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.


Liquor Liability Insurance for Bars

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.


How Does Liquor Liability Insurance Help Your Bar Business?

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


Is Liquor Liability Insurance a Requirement for Running a Bar?

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.

Compare Cheap Bar Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Commercial Property Insurance for Bars 


CoverWalletNEXT (Best)Thimble
Building coverage limit (minimum)$50,000$25,000$25,000/$500,000
Contents coverage limit (minimum)$50,000$25,000$25,000/$500,000
Outdoor signsExcluded$2,500Excluded
Accounts receivable ExcludedExcluded$5,000/$10,000
Money and securitiesExcluded$2,500$1,000
Lock and keys Excluded$2,500Excluded
Business interruption floaterExcludedIncludedIncluded
Equipment breakdown floaterExcludedIncludedExcluded
Inland marine insurance floaterExcludedExcluded$10,000
Employee dishonesty floaterExcluded$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.


How Does Commercial Property Insurance Work?

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:

  • Fire

  • Theft

  • Vandalism

  • Sinkhole collapse

  • Volcanic action

  • Lightning

  • Weather

  • Impact

  • Falling objects

  • Aircraft

  • Vehicle

  • Sprinkler leakage


Are The Liquors I Sell Also Covered?

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. 


What is a Food Spoilage Endorsement to Your Bar’s Commercial Property Insurance?

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. 


Business Owner’s Policy for Bars


CoverWalletThimble NEXT (Best)
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?YesYesYes
Name additional insureds for free?YesYesYes
BOP discount?YesYesYes


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. 


How Do You Use a Business Owner’s Policy?

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 


Can a Business Owner’s Policy Have Add-ons?

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. 


Tools and Equipment Insurance for Bars 


NEXT ThimbleFLIP (Best)
Aggregate limit$3,000/$10,000$2,500/$5,000$10,000
Covers hired and borrowed equipment?$3,000/$10,000$2,500/$5,000$50,000
Miscellaneous equipment also covered?$5,000/$10,000NoYes
Offered as an endorsement to general liability insurance?YesYesYes
Deductible$500$500$0


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. 


What is Tools and Equipment Insurance?

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:

  • Fire

  • Theft

  • Vandalism

  • Operator error

  • Upset

  • Mechanical breakdown

  • Electrical surge

  • Electrical shorts


I Bought Equipment for My Bar That Has a Factory Defect? Will Tools and Equipment Insurance Cover This?

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. 


Workers' Compensation Insurance for Bars

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. 


When Can Your Bar Use Workers Compensation Insurance?

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


Does Worker's Compensation Cover the Local Musicians I Hire for Nightly Gigs in My 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.


Commercial Auto Insurance for Bars 

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


Other Insurance Policies to Purchase

Excess Liability Insurance for Bars 

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. 


Cyber Liability Insurance for Bars

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

  • Public relations


Employment Practices Liability Insurance for Bars

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. 


Sports Bar Insurance

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

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. 


Juice Bar Insurance

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. 

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Bar Insurance Cost


Cost per MonthCost per YearDeductible
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 MonthCost per YearBest for
NEXT$100$1,200Best overall; Fastest general liability insurance for bars
Tivly$100$1,200Comparing bar insurance quotes over the phone
Thimble$1001200On-demand coverage for bars
CoverWallet$110$1,320Comparing bar insurance quotes online
GEICO$115$1,380Existing GEICO policyholders who own a bar and want a coverage for their business
FlIPFLIP 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

Compare Cheap Bar Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Bar Insurance Companies 

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. 


NEXT Bar Insurance

Pros

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance for bars

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 

Cons

  • 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


CoverWallet Bar Insurance

Pros

  • Compare bar insurance quotes online

  • Easy online policy management

  • Name landlords as additional insureds

  • Cancel your policy anytime with no charges

Cons

  • 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


Tivly Bar Insurance

Pros

  • Compare bar insurance quotes over the phone

  • Responsive customer service

  • A partner of many insurance companies

  • BBB accredited 

Cons

  • 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


FLIP Bar Insurance

Pros

  • Specializes in food and beverage businesses

  • Hefty tools and equipment insurance limits

  • Numerous add-ons to your policy

Cons

  • 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


Thimble Bar Insurance

Pros

  • On-demand coverage

  • Sells an event insurance package for bars

  • Issues an online certificate of insurance

Cons

  • 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


GEICO Bar Insurance

Pros

  • Discounts are available if you’re an existing GEICO customer

  • Quick to issue online quotes

  • Easy to file a claim online

Cons

  • 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


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