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Nightclub Insurance: Liability, Cost & Quotes from $11/mo

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

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

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Table of contents
1. What is Night Club Insurance?2. Nightclub Liability Insurance 3. General Liability Insurance for Nightclubs3.1. How Does General Liability Insurance Function?3.2. How Much Coverage Does General Liability Insurance Grant Your Nightclub?3.3. Does General Liability Reimburse a Patron’s Property That Mysteriously Disappeared or Was Stolen?3.4. I a m Hiring Fire Dancers for a Show in My Nightclub. Will My General Liability Insurance Grant Coverage if They Hurt Someone? 4. Liquor Liability Insurance for Nightclubs 4.1. How Does Liquor Liability Insurance Protect Your Nightclub?5. Product Liability Insurance for Nightclubs 5.1. Does Product Liability Insurance Cover Allergic Reactions and Foodborne Illnesses?6. Commercial Property Insurance for Nightclubs 6.1. What is Commercial Property Insurance?6.2. Does Commercial Property Insurance Cover My Nightclub’s Lighting Systems, Effects, and Sound Systems?6.3. Does Commercial Property Insurance Cover the Light Snacks of My Nightclub?6.4. Are the Equipment of Hired DJs Also Covered?6.5. I Own Multiple Clubs. Do I Insure Each With Individual Commercial Property Policies?7. Business Owner’s Policy for NightClubs 7.1. How Much General Liability Coverage and Commercial Property Coverage Does a Business Owner’s Policy Give to Your Nightclub?7.2. How Much Money Can You Save by Buying a Business Owner’s Policy?8. Tools and Equipment Insurance for Nightclubs8.1. How Does Tools and Equipment Insurance Work?8.2. Are the Equipment of DJs and Other Independent Entertainment Professionals Covered?9. Fine Arts Insurance10. Workers' Compensation Insurance for Nightclubs 10.1. How Does Workers Compensation Insurance Help Your Nightclub? 10.2. Are Hired DJs and Other Independent Entertainment Professionals Covered?11. Other Insurance Policies to Consider Getting11.1. Excess Liability Insurance11.2. Cyber Liability Insurance11.3. Business Interruption Insurance11.4. Inland Marine Insurance11.5. Employment Practices Liability Insurance12. Nightclub Insurance Cost13. Best Nightclub Insurance Companies13.1. NEXT Nightclub Insurance 13.1.1. Pros13.1.2. Cons13.2. CoverWallet Nightclub Insurance 13.2.1. Pros13.2.2. Cons13.3. Tivly Nightclub Insurance 13.3.1. Pros13.3.2. Cons13.4. Thimble Nightclub Insurance 13.4.1. Pros13.4.2. Cons13.5. FLIP Nightclub Insurance 13.5.1. Pros13.5.2. Cons

Nightclubs are one of the riskiest businesses out there and are in the same league as bars and taverns. A lot of people are admitted into the premises and served liquor. And so, the risk of someone getting injured is considerably high. Of course, lighting and high-voltage sound systems are used. This contributes to the possibility of fires and electrocution. 

Consider getting nightclub insurance that specializes in covering the risks unique to your business. This guide will start by discussing the policies included. After that, we’ll talk about the cost of premiums. We’ll then end by talking about the best companies to work with. 

What is Night Club Insurance?

Night club insurance is a specialized insurance underwritten for the different types of nightclubs, such as dance clubs, live music clubs, comedy clubs, and sports-themed nightclubs. Related insurance packages are pub insurance and bar insurance. Usually, policies included are liability, commercial property, workers' compensation, tools and equipment, and more.


Nightclub Liability Insurance

General liability, liquor liability, and product liability are the most common types of nightclub liability insurance. Take a look at how each works.


General Liability Insurance for Nightclubs


CoverWalletNEXT (Best)ThimbleFLIP
Per occurrence limit$1,000,000$300,000/$1,000,000$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
Products and completed operations aggregate limit$2,000,000
$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
Tenant’s legal liability coverage limit$100,000
$100,000$5,000$100,000
Waiver of subrogation included?YesNoIncludedExcluded
Hired/non-owned auto liability coverage included?YesNoExcludedExcluded
Food-borne illness endorsement included?NoYesYesYes
Can you get a certificate of insurance online?YesYesYesNo
Name additional insureds?YesYes
YesNo
Deductible$0$0$0$0


Claims for bodily injuries or property damage against nightclubs can be very expensive. For example, a nightclub in Bend, Oregon faced a $1 million lawsuit brought by a customer who was stabbed.

General liability insurance is the only policy that can help if your nightclub finds itself in the same situation. Use the table above to see which insurance company offers the best general liability insurance.


How Does General Liability Insurance Function?

General liability insurance covers claims for bodily injuries or property damage that patrons, customers, and other third parties file against your nightclub. Here are some situations where general liability insurance can kick in:

  • A patron falls from the dance floor

  • An employee bumps and hurts someone while serving food and drinks

  • A stampede happens in your nightclub and some patrons were trampled

  • A bouncer hurts a patron out of retaliation or self-defense

  • A fight breaks out and those who got involved are demanding compensation from you


How Much Coverage Does General Liability Insurance Grant Your Nightclub?

General liability insurance grants $1 million-$2 million coverage. Your nightclub can use this to cover the following expenses:

  • Claimant’s medical treatment

  • Reimbursement for the damaged property of the claimant

  • Settlements

  • Attorney fees, investigation fees, and other related costs

  • Court judgments


Does General Liability Reimburse a Patron’s Property That Mysteriously Disappeared or Was Stolen?

General liability insurance with customer property coverage or mysterious disappearance endorsement can reimburse a patron who lost his or her wallet, phone, and other belongings while in your nightclub.


I am Hiring Fire Dancers for a Show in My Nightclub. Will My General Liability Insurance Grant Coverage if They Hurt Someone?

Most likely not. General liability insurance for bars and nightclubs only covers bodily injuries or property damage caused by your employees. The fire dancers you hire are considered as 1099 workers. Demand the fire dancers to get their own liability coverage and then name you as an additional insured.


Liquor Liability Insurance for Nightclubs

Alcohol brings fun. But it can also cause mayhem and self-inflicted injuries when consumed excessively. This is why it’s smart to get liquor liability insurance because intoxicated patrons can hold you responsible.


How Does Liquor Liability Insurance Protect Your Nightclub?

Liquor liability insurance takes care of the expenses that emanate after these situations happen in your nightclub:

  • A drunk patron files a claim after stumbling and hitting his head on something

  • An intoxicated patron loses consciousness. He claims your employee overserved him with alcohol

  • A drunk patron hits someone by accident. The person, who got injured, files a claim for bodily injury against your business


Product Liability Insurance for Nightclubs

Product liability insurance is automatically included in the general liability of nightclubs and other related businesses such as taverns and pubs. You can use product liability insurance to cover expenses and monetary reimbursement if patrons file a claim because you served bad liquor and poorly prepared food.


Does Product Liability Insurance Cover Allergic Reactions and Foodborne Illnesses?

Yes. Product liability insurance, if underwritten with a foodborne illness clause, can protect your nightclub if a patron files a claim after experiencing an allergic reaction or foodborne illness because of the food or liquor served.

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Commercial Property Insurance for Nightclubs 


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


A nightclub is very susceptible to fire because sound systems, lighting, and wiring can overheat and cause a spark. Some negligent patrons can also leave lit cigarettes, which can ignite trash cans and couches.

The NFPA reports that 1,714 structural fires happen in drinking establishments per year and cause $165 million loss in direct property damage. 

Considering the facts above, it might be a good decision if you purchase commercial property insurance for your nightclub. Use the table above to see which insurance company offers the best commercial property insurance. 


What is Commercial Property Insurance?

A commercial property policy is the nightclub business insurance that protects your nightclub’s rented, owned, or leased commercial space against the following exposures:

  • Fire

  • Theft

  • Vandalism

  • Sinkhole collapse

  • Volcanic action

  • Lightning

  • Weather

  • Impact

  • Falling objects

  • Aircraft

  • Vehicle

  • Sprinkler leakage


Does Commercial Property Insurance Cover My Nightclub’s Lighting Systems, Effects, and Sound Systems?

Yes. Commercial property insurance covers your nightclub’s lighting systems, effects, and sound systems and will provide a $15,000-$50,000 reimbursement if these get damaged or destroyed because of the perils we listed above. 


Does Commercial Property Insurance Cover the Light Snacks of My Nightclub?

Commercial property insurance can reimburse the estimated value of the light snacks stocked somewhere in your nightclub. However, the policy doesn’t cover their spoilage. To solve this coverage gap, we suggest you include a food spoilage endorsement in your nightclub’s commercial property insurance.


Are the Equipment of Hired DJs Also Covered?

No. Independent DJs are hired contractors and not a part of your business. Therefore, their equipment can’t be covered by your commercial property policy in case of damage or loss.


I Own Multiple Clubs. Do I Insure Each With Individual Commercial Property Policies?

No. You can add a blanket coverage endorsement to a single commercial property insurance so that it will cover multiple nightclubs placed in the same state, city, or municipality. 


Business Owner’s Policy for NightClubs 


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


Insurance companies might ask if you want to bundle commercial property and general liability insurance into a commercial property policy. A business owner’s policy is a good option if you want to save money on premiums and enjoy easier policy management. Use the table above to see which insurance company offers the best business owner’s policy for nightclubs.


How Much General Liability Coverage and Commercial Property Coverage Does a Business Owner’s Policy Give to Your Nightclub?

The business owner’s policy for your nightclub typically offers a $1 million-$2 million general liability coverage and $25,000-$500,000 commercial property coverage. You can customize to enjoy higher or lower limits.


How Much Money Can You Save by Buying a Business Owner’s Policy?

A business owner’s policy allows you to save 5%-10% on premiums. And so, this is a very economical option if your business doesn’t have the liberty to invest much on insurance right now. 


Tools and Equipment Insurance for Nightclubs


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 nightclub’s equipment isn’t cheap. A full-blown lighting system will cost $5,000-$10,000. Of course, a set of good speakers that are equipped with a state-of-the-art subwoofer and bass system cost $15,000-$20,000. 

Tools and equipment insurance grants comprehensive coverage for your nightclub’s speakers, lighting, and other equipment. Use the table above to see which insurance company offers the best tools and equipment insurance for nightclubs. 


How Does Tools and Equipment Insurance Work?

Tools and equipment insurance will help your nightclub cover the cost of repairing or replacing speakers, lighting, and other pieces of equipment that were destroyed or damaged by:

  • Fire

  • Theft 

  • Vandalism

  • Civil commotion

  • Mechanical breakdown

  • Electrical breakdown 

  • Lightning

  • Upset


Are the Equipment of DJs and Other Independent Entertainment Professionals Covered?

This depends on whether or not your tools and equipment insurance is designed to automatically cover the equipment of DJs and other hired entertainment professionals. It’s best to talk with the insurance company’s representative to be clear on this. 


Fine Arts Insurance

Do you use interior decors such as handmade artwork, sculptures, figurines, or vases to uplift the atmosphere of your nightclub? In this case, consider purchasing fine arts insurance. 

Fine arts insurance will take care of costs if valuable interior decors in your nightclub gets destroyed or damaged by fire, theft, vandalism, and other covered perils. 

You can avail fine arts insurance as a stand-alone policy or as an endorsement to commercial property insurance. 


Workers' Compensation Insurance for Nightclubs 

Other than patrons, employees can also get hurt while in your nightclub’s premises. Your bartender can sustain cuts after dropping a glass. A member of your kitchen crew can sustain burns and lacerations. Your utility personnel can slip and fall while mopping the floor. 

Your nightclub must grant appropriate compensation if an employee experiences a work-related accident. In connection, workers' compensation insurance can be used to satisfy this without using funds. 


How Does Workers Compensation Insurance Help Your Nightclub? 

Workers' compensation insurance helps your nightclub by covering the cost of these work benefits that an employee must receive after sustaining a work-related injury or disease:

  • Emergency medical care

  • Hospitalization

  • Medication

  • Rehabilitation and retraining

  • Lost wages

  • Funeral expenses and allowance to dependents in case of death


Are Hired DJs and Other Independent Entertainment Professionals Covered?

Workers' compensation insurance doesn’t cover DJs and other entertainment professionals you hire as independent contractors. Nonetheless, insurance companies allow you to name such workers as additional insureds for workers comp coverage to apply. 


Other Insurance Policies to Consider Getting

Excess Liability Insurance

The current limits of your general liability policy or liquor liability policy might not be enough to cover a claim. And so, it’s important to include an excess liability policy in your nightclub insurance. 

Here’s an example for you to understand how excess liability insurance works.  A fire happens in your nightclub. Several patrons got injured. All file a claim and this amounts to $3 million. You only have a $1 million general liability policy. And so, there’s $2 million left to be covered. If you have excess liability insurance, this remaining amount can still be covered by the insurance company. 


Cyber Liability Insurance

Does your nightclub accept bookings and payments through a website? Cyber liability insurance is a must-have if your answer is yes. If your website gets breached and the sensitive information of customers gets leaked, cyber liability insurance will take care of the cost of customer notification, fines, legal defense, professional services for containing the breach, and credit and fraud monitoring. 


Business Interruption Insurance

Your nightclub can’t make money without people. And sometimes, unexpected things happen which will force them to stay away from your business or force you to stop admitting patrons temporarily. Of course, this will result in lost revenues. 

Consider purchasing business interruption insurance. This will supplement some of your business’s lost income in case operations had to be stopped to make way for repairs, upgrades, or relocation. Coverage also applies if your nightclub can’t operate in the meantime because of an economic crisis, storm, or flood. 


Inland Marine Insurance

Having inland marine insurance is a good idea if you frequently find yourself moving portable equipment from one location to the next. If speakers, lighting, and other movable equipment get damaged or destroyed during transit because of fire, theft, vandalism, and other covered perils, inland marine insurance will cover your losses. 


Employment Practices Liability Insurance

An employee of your nightclub can experience sexual harassment. The thing is, he or she might file a claim not only against the one who did it but also against your business. And so, it’s important to get employment practices liability insurance. 

By having employment practices liability insurance, your nightclub can cover settlements, legal defense, and other related costs if an employee files a claim for sexual harassment, retaliation, negligent hiring, exploitation, and other violations of a worker’s rights. 

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Nightclub Insurance Cost


Cost per MonthCost per YearDeductible
General liability insurance$190$2,280$0-$500
Liquor liability insurance$225$2,700$500-$1,000
Commercial property insurance$250$3,000$1,000-$2,500
Business interruption insurance$195$2,340$500-$1,000
Business owner’s policy$300$3,600$500-$1,000
Workers compensation insurance$220$2,640$2,000-$5,000
Excess liability insurance$192$2,304$500-$1,000
Cyber liability insurance$205$2,460$1,000
Employment practices liability insurance$226$2,712$500-$1,000


The average nightclub insurance cost is $190 per month or $2,280 per year for a $1 million general liability policy. Factors that determine premiums are claims history, business history, annual revenue, annual payroll, and location. You can get cheap nightclub insurance by clicking the “Get Quotes” button on this page and comparing the quotes you’ll receive. Other things you can do are:

  • Bundling insurance policies to avail a discount

  • Keep bouncers well-educated about proper self-defense and de-escalation of public fights

  • Availing optional policies as endorsements

  • Having high deductibles when you choose to go for a policy with high limits 


Here’s another table that shows how much the best companies charge for their $1 million general liability insurance for nightclubs:


Cost per MonthCost per YearBest for
NEXT$110$1,320Best overall; Fastest general liability insurance for nightclubs
Thimble$110$1,320Nightclub insurance online quotes comparison
Tivly$110$1,320Comparing nightclub insurance quotes over the phone
CoverWallet$115$1,380On-demand coverage for nightclubs
FLIPFLIP doesn’t state the average cost of its general liability insurance for nightclubs
FLIP doesn’t state the average cost of its general liability insurance for nightclubs
Tools and equipment insurance for nightclubs

Compare Cheap Nightclub Insurance Quotes Online

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Best Nightclub Insurance Companies

Different nightclubs, different risks. This is why many insurance companies offer nightclub insurance having their own unique perks. The reviews below present the best nightclub insurance companies. Read to know their pros, cons, and cost of a $1 million general liability insurance. 


NEXT Nightclub Insurance

Pros

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance for nightclubs

  • 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 nightclubs through its insurance package for nightlife establishments. You can avail this as a basic, pro, and deluxe plan. Each has its own limits with basic having the least and deluxe the highest. Policies included in your insurance bundle are as follows:

  • $1 million-$2 million general liability insurance with liquor liability endorsement added 

  • $25,000 commercial property insurance

  • $5,000-$10,000 tools and equipment insurance

  • Workers compensation insurance

Note that NEXT might curate your quote from Tivly. 


Best for: Best overall; Fastest general liability insurance for nightclubs

Average cost: $110 per month

Our rating: 10/10


CoverWallet Nightclub Insurance

Pros

  • Compare nightclub insurance quotes online

  • Easy online policy management

  • You can talk with a representative before purchasing your coverage

  • Cancel a policy anytime with no charges 

Cons

  • Not an insurance company but an insurance broker 

CoverWallets nightclub insurance is tailored to the needs of nightclubs that are involved or uninvolved with the sales of alcohol beverages. Note that your quote will come from different insurance companies because CoverWallet is a broker and not a carrier. A typical nightclub insurance quote will offer the following:

  • $1 million-$2 million general liability insurance

  • $50,000 commercial property insurance with an optional equipment breakdown floater

  • Workers compensation insurance

  • Liquor liability insurance

  • Employment practices liability insurance


Further policies can be added to your nightclub insurance quote if you consider talking with a representative before getting covered online. 

Best for: Nightclub insurance online quotes comparison

Average cost: $115 per month

Our rating: 10/10


Tivly Nightclub Insurance

Pros

  • Responsive customer service

  • Compare quotes over the phone

  • A partner of many reputable insurance companies

  • Covers nightclubs with demanding profiles

Cons

  • You need to call to get a quote

Tivly works with NEXT and other insurance companies to provide general liability, commercial property, workers compensation, and other business insurance solutions to nightclubs with demanding profiles. To know if the company can provide coverage and compare quotes over the phone, you need to call a Tivly representative

Best for: Comparing nightclub insurance quotes over the phone

Average cost: $110 per month

Our rating: 10/10


Thimble Nightclub Insurance

Pros

  • On-demand coverage

  • Sells an event insurance package for nightclubs

  • Issues an online certificate of insurance

  • Customer property coverage included in general liability insurance

Cons

  • You can’t reach customer service by calling 

Thimble works with Tivly in covering nightclubs with general liability, professional liability, workers compensation, commercial auto, cyber liability, and commercial property insurance. You will be redirected to a Tivly representative for a quote. 

Best for: On-demand coverage for nightclubs

Average cost: $110 per month 

Our rating: 10/10


FLIP Nightclub 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 doesn’t have nightclub insurance coverage. Nonetheless, this company can cover you because it sells liquor liability and general liability insurance for all businesses that are involved with selling food and alcoholic drinks. At an additional cost, you can include optional policies such as tools and equipment, assault and battery, and cyber liability. 

Best for: Tools and equipment insurance for nightclubs

Average cost: 

Our rating: 9/10


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