Establishments that sell high volumes of liquor have additional liabilities associated with their business. Because of the added risk of rowdy customers, these establishments require more coverage than what general liability policies offer. Some drinking establishment owners have to pick and choose from different policies to get customized comprehensive coverage, but they can easily get the coverage they need through a Bar and Tavern insurance package.
Bar and Tavern insurance is a package of insurance policies that are specifically suited for restaurants, pubs, sports bars, wine bars and other establishments that sell a significant amount of liquor and may have the occasional live entertainer or other events that bring in a good crowd.
What Does Bar and Tavern Insurance Cover?
Bar and Tavern insurance is typically made up of four types of coverage, designed to work together to protect establishment owners from the common liabilities that come along with serving liquor.
- General Liability: This protects the business against a claim or lawsuit brought on by a patron, or other third party person, for bodily injury or property damage sustained on the premises such as a slip and fall. General liability may also include product liability, which would cover the business from claims arising from a product it sold. This would cover food poisoning or other illnesses resulting from food or drink sold at the establishment. General liability typically does not cover more high-risk activities such a mechanical bull or pyrotechnic display.
- Property Insurance: Commercial property insurance protects a business against loss from major damage such as a kitchen or electrical fire. It is designed to help a business rebuild following a major accident, but does not cover artwork or other collectibles; that would require a fine arts coverage policy. It also does not cover earthquakes or floods. These would need additional policies if they are a risk to the property.
- Liquor Liability: A must-have for any establishment that sells liquor is liquor liability coverage. This type of policy covers claims against a business that arise out of the sale or service of alcoholic beverages. General liability insurance has an exclusion that precludes coverage for claims or lawsuits relating to the sale, gift, distribution or use of alcoholic beverages, making liquor liability coverage essential.
- Assault and Battery: General liability and liquor liability do not typically exclude general assault and battery, unless the accused person is an employee or owner of the establishment. When an establishment needs to take action against an unruly patron, injuries may result. The patron may then turn around and sue the establish for “expected or intended injury,” which is only covered under an assault and battery policy.
About American Team Managers Insurance Services
Founded in 1998 by Chris C. Michaels, American Team Managers Insurance Services (ATM) has provided wholesale and MGA services to more than 5,000 independent insurance agents throughout the United States. Our goal is to establish close, long-term relationships with our agency partners and insurance carriers and provide competitive products for the Exclusive and Non-Exclusive markets that we serve. For more information on our products and services, give us a call at (714) 414-1200 to speak to a representative.