What does bar insurance cost?

If you operate a business that serves alcohol, it’s important to protect it financially. So, you might be wondering, “How much is insurance for a bar?” This article answers that crucial question, explaining how to determine your bar insurance cost, what bar insurance covers, and why it’s essential.

Let’s dive into what every owner needs to know about business insurance for bars and restaurants.

Cost-effective financial protection for bars.

For bar owners, even minor incidents can lead to major expenses. Because there’s always a risk of being sued, suffering property damage, or employee injuries happening at your establishment, bar insurance is well worth the cost.

Imagine it’s a typical Friday night at your business, and a server spills some ice onto the floor. It’s only a few cubes and not worth the time and effort to hunt them down, so the employee keeps moving. Minutes later, a customer steps on one of the cubes, slips, and falls.

Their friend helps them up, and they continue to the exit—no big deal. But the customer later discovers that they chipped a bone in their elbow and will need surgery to repair the damage. They sue your business for the cost of their medical care and lost wages while they recover (a total of more than $95,000), claiming your server was negligent in not cleaning up the spill.

Let’s say they win their case. The judgment plus your legal defense costs will be well over $100,000. That’s much more than the typical bar liability insurance cost for a year. And, of course, the customer’s injury was just one incident on one day. The same risk is present for the other 364 days of the year. So, besides doing all you can to run your business safely, insurance for bars is critical.

Get a quote to check your bar insurance cost.

Every pub, tavern, or cocktail lounge is unique, so there’s no “standard cost for bar insurance.” Many factors will affect your bar insurance cost, including:

• The amount of alcohol you serve
• The size of your business
• The location of your bar
• Your claims history
• Your deductible

You can find out how much business insurance for your bar will be by getting a self-service quote online. Just provide some information about your business, and if you qualify we’ll give you a price for a comprehensive bar insurance policy from THREE.

Keep in mind that individual policies from other providers may cost less than a comprehensive policy but might leave you open to risk. Getting all the coverage you need in one policy rather than many makes it easy to protect your business and can help you avoid coverage gaps.

What is Liquor Liability insurance?

If you own or operate a bar, you’ve probably heard of Liquor Liability Insurance. Also known in the insurance industry as Dram Shop Insurance (for an 18th-century practice of serving alcohol by the unit of measurement called a dram), it protects businesses that sell, serve, or manufacture alcoholic beverages. This coverage can pay costs associated with legal claims and damages resulting from accidents or injuries caused by people who are intoxicated and were over served alcohol at the insured bar.

A THREE policy includes liquor liability coverage. That’s great for your business because it means you don’t have to purchase a separate liquor liability policy.

From physical assets (like your building) to interactions among your staff and with customers, bar insurance from THREE has all the types of coverage most businesses need, including:

• Property Insurance: If you experience a grease fire in your kitchen, a power outage that causes food spoilage, or a natural disaster that damages your building, costs from these incidents are typically covered.
• Liquor Liability Insurance: As explained above, a THREE policy shields your business from costs related to lawsuits involving liquor service.
• Cyber Insurance: Your business is protected from many expenses if a hacker steals sensitive data.
• Workers’ Compensation Insurance: Employee injuries are common in bars. This coverage can pay costs related to medical treatment and a portion of lost wages if a person can’t work while recovering. It can also pay a death benefit to surviving family members if an employee dies from a work-related incident. States require most businesses with employees to have Workers’ Compensation Insurance.
• Employment Practices Liability Insurance: This insurance protects your business from things like employee allegations of sexual harassment, discrimination, or wrongful termination.
• Commercial Auto Insurance: If your business owns or leases vehicles (a van used for picking up supplies, for example), this coverage can pay for towing costs, collision repairs, and accident liability.

Who turns to THREE for insurance for bars?

We work with all types of stakeholders in the bar and restaurant industry—from first-time bar-owners to those with decades of experience.

If you’re new to hospitality, we can help you navigate the intricacies of business insurance, including bar insurance requirements (like Workers’ Compensation insurance), costs, and the features of different coverages. Our comprehensive policy makes it easy to get financial protection for your bar so you can focus on running a successful business.

If you’re an experienced bar owner you know how important it is to understand the features and benefits of your insurance coverage. We can assist with that.

If you’re an insurance broker or advisor, you can count on THREE for detailed information on bar insurance that makes it easy for you to help your clients.

Contact THREE if you have questions about insurance for bars.

Operating a bar can be fun and rewarding. It can also be stressful if you aren’t adequately insured. We make it easy to get the coverage you need by providing a single comprehensive policy that addresses the risks bar owners typically face.

You can get a quote and purchase a policy without our help, but if you have questions about bar insurance, we’re happy to answer them. Contact us at 1-800-507-4495, Mon. - Fri. 8am-9pm ET.