What coverages can tavern policies come with?
Tavern policies regularly come with property and liability coverage options. Property coverages are primarily for assets that a bar or tavern owns. Liability coverages are mainly for situations where the bar could be held liable for another party’s harm.
Depending on the specific policy, property protections such as the following may be available:
- Building Coverage: Might cover a building and other structures (e.g. patio) if a bar owns its location.
- Tenants Betterment Coverage: Might cover the build-out costs if a bar leases its space.
- Contents Coverage: Might cover kitchen appliances, shelving, dishes, tables and chairs, computers, and more.
- Food Contamination Coverage: Might cover ingredients and prepared foods against spoilage that’s caused by a disaster.
- Equipment Breakdown Coverage: Might cover essential kitchen equipment in case it breaks down.
- Business Income Coverage: Might cover lost income if a disaster forces a bar to close for some time.
Some liability protections that these policies frequently offer are:
- General Liability Coverage: May protect against basic “slip and fall” accidents, and also defamation and false advertising lawsuits.
- Assault and Battery Coverage: May protect against lawsuits alleging assault by an employee (e.g. bouncer), or by someone else on the premises.
- Liquor Liability Coverage: May protect against a range of incidents involving intoxicated customers, possibly including falls, sexual assaults, DUIs, and other incidents.
- Product Liability Coverage: May protect against illnesses customers contract because of improperly handled foods or beverages.
- Cyber Liability Coverage: May protect against data breaches that compromise customer credit card or driver's license information.
- Commercial Umbrella Liability Coverage: May provide an additional layer of liability protection, in case of an overly expensive lawsuit.
An insurance agent who specializes in tavern insurance can explain each of these in greater detail, and also review any other coverage options that a policy has.
Do bars in Massachusetts need liquor liability insurance?
The Massachusetts Alcoholic Beverages Control Commission generally requires that businesses obtain at least a minimum amount of liquor liability insurance, before a liquor license will be issued by the ABCC.
Thus, bars normally should plan on getting this coverage. Liquor liability may be available on its own, but it’s frequently included among the coverages that a tavern policy has.
How much do bars pay for their insurance?
Premiums for tavern insurance policies are impacted by numerous factors. For example, the following is just a sampling of what can impact cost:
- Building location and size
- Annual sales and customers served
- Percent of sales coming from alcohol
- Types of adult beverages offered
- Any recent insurance claims
To find out how much insurance will cost in a particular situation, bars and taverns can work with an independent insurance agent. An independent agent will be able to compare quotes from several insurance companies, looking at both protections and premiums.
