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.
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.
General liability, liquor liability, and product liability are the most common types of nightclub liability insurance. Take a look at 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|
|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?||Yes||No||Included||Excluded|
|Hired/non-owned auto liability coverage included?||Yes||No||Excluded||Excluded|
|Food-borne illness endorsement included?||No||Yes||Yes||Yes|
|Can you get a certificate of insurance online?||Yes||Yes||Yes||No|
|Name additional insureds?||Yes||Yes||Yes||No|
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.
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
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
Attorney fees, investigation fees, and other related costs
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.
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.
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.
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 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.
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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|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|
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.
A commercial property policy is the nightclub business insurance that protects your nightclub’s rented, owned, or leased commercial space against the following exposures:
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.
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.
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.
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.
|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|
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.
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.
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.
|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 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.
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:
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.
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.
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.
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
Rehabilitation and retraining
Funeral expenses and allowance to dependents in case of death
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.
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.
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.
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.
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.
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.
|Cost per Month||Cost per Year||Deductible|
|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 Month||Cost per Year||Best for|
|NEXT||$110||$1,320||Best overall; Fastest general liability insurance for nightclubs|
|Thimble||$110||$1,320||Nightclub insurance online quotes comparison|
|Tivly||$110||$1,320||Comparing nightclub insurance quotes over the phone|
|CoverWallet||$115||$1,380||On-demand coverage for nightclubs|
|FLIP||FLIP 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|
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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.
Issues an online proof of insurance instantly
Fastest general liability insurance for nightclubs
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 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
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
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
Responsive customer service
Compare quotes over the phone
A partner of many reputable insurance companies
Covers nightclubs with demanding profiles
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
Sells an event insurance package for nightclubs
Issues an online certificate of insurance
Customer property coverage included in general liability insurance
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
Specializes in food and beverage businesses
Hefty tools and equipment insurance limits
Numerous add-ons to your policy
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
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!