Table of contents
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.
| CoverWallet | NEXT (Best) | Thimble | FLIP | |
|---|---|---|---|---|
| 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? | 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 |
| 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.
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
Settlements
Attorney fees, investigation fees, and other related costs
Court judgments
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.
Get all the best quotes from leading providers in a click of a button!
| CoverWallet | NEXT (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 signs | Excluded | $2,500 | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 |
| 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:
Fire
Theft
Vandalism
Sinkhole collapse
Volcanic action
Lightning
Weather
Impact
Falling objects
Aircraft
Vehicle
Sprinkler leakage
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.
| CoverWallet | Thimble | 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? | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes |
| BOP discount? | 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.
| NEXT | Thimble | FLIP (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/$10,000 | No | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes |
| 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.
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
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
Hospitalization
Medication
Rehabilitation and retraining
Lost wages
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 |
Get all the best quotes from leading providers in a click of a button!
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.
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
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
On-demand coverage
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
Average cost: FLIP doesn’t state the average cost of its general liability insurance for nightclubs
Our rating: 9/10
10 / 10
For me this company has proven to be the best to do business with and worth my hard earned money. Contractors this is your company look no further.
7.7 / 10
Decent experience with Hiscox business insurance
10 / 10
Good company. Good and knowledgable customer service. If they don't know something they will pass you on to a more experienced rep that is more knowledgable. So far so good.
10 / 10
Best insurance ever
10 / 10
Coolest concept, I wish this was applied to other insurance products too.
9.4 / 10
Fastest ever online insurance quote and purchase! Also, great rates and professional customer reps that helps with whatever you need, if you need. Nice company!
2.8 / 10
Embroker sells a product that it doesn't honor. We purchased a combination D&O and EPLI policy. However, when it came to renewal, it told us that we only had D&O coverage even through our ACCORD certificate clearly mentions we have both. Basically they refused to honor the EPLI coverage and will leave you hanging with the bag. At time of renewal, they more than doubled our quote to get similar coverage. Basically BAIT & SWITCH. Unacceptable tactics. Easy to buy and pay but you may not be... Read More
2.8 / 10
Great platform. Terrible policy. There is no teeth behind it. No coverage. It's a fake policy that they sell. Sold us an EPLI policy that later we came to find out had no EPLI coverage. Amazing that they can get away with outright fraud. Check the positive reviews. They are all 'Anonymous' posted by Emroker staff. Stay away and find a real policy that will actually provide you coverage. We've been bitten by them and hope to find restitution via a lawsuit.
Paul Burns Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
It has been 70 days since I made a claim on the roof of my building. No one from the company will return calls. We are in hurricane season and located in Louisiana. My building is tarped to secure it.
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
They are the worst, my truck was hit in January 23 and the claim adjuster has not been out to this very day! They have every excuse in the book as to why. They have not been to the collision shop. PLEASE AVOID THESE SCAM ARTIST!
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Avoid these SCAM ARTISTS! They don’t pay claims!!! Save yourself the trouble and money!
Kasey Arey Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
This company gives you a price that was in place for a year and when you have to use it there is fine print were they can go back and charge you more. Would not recommend them to any one. Crooks
John Murphy Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Worst insurance comapny I have ever dealt with. A commercial vehicle represented by GUARD t boned my wife and daughters family vehicle in the middle of the day. Driver was cited and insurance claim insued. Fast forward 4 months and refusal of full amount of claim is still happening. Driver was found guilty, repairs started on my vehicle and when it comes to the final bill and diminished value we cannot get any help. I am out a family car, have an injured and traumatized wife and children,... Read More
Harshadray Patel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Extremely bad service, when you call , will make you wait on the phone for ever (over an Hour) and still no one to answer , so you end up hanging up. To cancel the policy, bounce you from one department to the other. They are supposed to refund from the date other insurance started and after sending the proof of other insurance policy, still they did not refund based on that actual date instead they use the date i managed to get hold of them. They charged me $7000.00 for a year's insurance on... Read More
Aaron Wensel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Guard Insurance is terrible. They were so bad I cancelled them because them couldn't figure out why I would never get a paper copy of the bill . Verified my address with them and still intermittent billing. I cancelled them in March through my local broker. Today 6/27 I get a letter in the mail from a collections company saying I owe 87.97. This was the first myself or my broker heard of owing this money. Here is some advice for this failure of a company send me a god damn bill and I will pay.... Read More
Michael Swink Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
My employer had to have workers compensation by law. He obtained a policy through this Berkshire Hathaway GUARD and they failed me. I fell from a ladder and fractured my spine in 7 different places, my clavicle in 4 places, and the base of my skull. Going to my Dr visits I was prescribed medication for pain and the insurance company placed a pre-authorization hold on me picking up the medication from Walgreens. The hold lasted 5 days! My weekly benefits have never been on time, right now... Read More
10 / 10
Liberty Mutual is one of the more simple companies to deal with. I had to file a claim for my business owner policy after I caught one of my employees stealing a large amount of products from my business. Liberty mutual paid the claim fast and with no efforts. I wish the legal process was as easy…
10 / 10
For me this company has proven to be the best to do business with and worth my hard earned money. Contractors this is your company look no further.
7.7 / 10
Decent experience with Hiscox business insurance
9.4 / 10
Very pleased with Hiscox - their small business insurance rates are very good and they specialize in small business which gives me a peace of mind as a small business owner. So far so good!
10 / 10
Their customer service is absolutely fantastic. Very patient, knowledgable and provided excellent explanation of the purchased policy. I would highly recommend this insurance company to anyone that's looking to protect their business from unexpected expense. Thank you Hiscox for doing a great job for my business!
0.6 / 10
STAY AWAY! I wouldn't recommend hiscox small business liability insurance to anyone. Better not waste both your money and your time. Hiscox customer service is extremely unpleasant, not organized and not professional. It is the worst company we have dealt with in almost 25 years in business!
10 / 10
Good company. Good and knowledgable customer service. If they don't know something they will pass you on to a more experienced rep that is more knowledgable. So far so good.
10 / 10
Extremely fast and simple. Wasted a lot of time and money until I found these guys! I feel like my business is in good hands now.
10 / 10
Hiscox's the best! My business is insured with them for over 12 years and am not planning to switch!
10 / 10
Excellent experience with Hiscox BOP for my coffee shop. They provided all it needed.
10 / 10
My HI barbershop is well covered with their great BOP product for 5 years already! not planning to switch!
10 / 10
Best insurance ever
10 / 10
Coolest concept, I wish this was applied to other insurance products too.
10 / 10
Great experience
6 / 10
Didn't relate to the concept much, but it makes sense if you need insurance to go
0 / 10
It doesn't really feel sustainable to me and doesn't offer business interruption, product liability and commercial property insurance. They have no local agents and despite their technology first approach you cannot file claims online. Additionally, product manufacturers are not covered by Thimble and they don't provide enterprise solutions.
10 / 10
As a contractor that works 3 times a week for a few hours, Thimble gets really handy for me and saves me money. I have no use for these massive business insurance coverages offered by traditional insurance companies.
10 / 10
Excellent concept which is useful to many small businesses!
10 / 10
Been waiting for this type of solution for a long time!
10 / 10
Love their business insurance solutions for freelancers! Great app!
Not all those who wander are lost.
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