Bars and Nightclubs

Insurance answer

Bars and nightclubs have special considerations for insurance.

Updates are very important in older buildings due to the potential fire hazard of the alcohol on premises. Plumbing, heating, wiring systems need to be checked. Storage of the liquor, packaging materials and other paper products should be well away from any ignition sources.

If candles are used on tables then the containers need to be considered for stability. If there is food service then the refrigeration system should be considered - very old systems can be ammonia. Consider where cleaning solvents and cooking equipment is stored in the kitchen area. Is there clearly designated areas for smoking, if smoking is allowed on premises.

Of course having experience with ejecting the unruly customer and a firm policy about service of the liquor is part of the underwriting considerations.

Bars and nightclubs often have limited markets to choose from. It is important that you discuss any concerns with your agent, broker or risk manager. One of the important parts of your application with be the percentage of your receipts for food vs. liquor. Take control of your insurance.