Nightclub Insurance Programs: Costs, Carriers & More
May 5, 2020
Nightclub vs. Bars & Taverns Insurance
Running a nightclub has the potential to be a lucrative and exciting way to make a living. There are unique insurance needs that go along with operating such an establishment, however. Like bars & tavern insurance, nightclub insurance handles the unique risks of a business that typically sells a lot of alcohol. What separates nightclub insurance from a typical bar is specific to each place. If a club is going to have concerts, for example, or provide adult entertainment, there are extra costs and coverages that need to be taken into account.
Nightclub Insurance Program Details
There are several liabilities that need to be covered by any nightclub insurance policy, and several that may only be needed for certain establishments.
A general liability policy is going to cover anything that happens in the club itself. This includes fights, slips and falls, and in some cases, food poisoning. A nightclub has a lot of people moving in and out, and accidents happen. A general liability policy will absorb the risk for the club.
Liquor is ubiquitous in a nightclub, and people drinking a lot of liquor can lead to sticky situations. People make decisions under the influence that they would not normally make, and the nightclub needs to be prepared to cover those pitfalls. Serving alcohol to patrons can make the club responsible legally, so this policy is a must.
Assault & Battery Liability
Assault and battery are tied to the liquor concern, but are separate in terms of insurance policies. Nightclubs have a persistent problem with people fighting or assaulting one another, and they could potentially be held responsible for ones occurring on their property. There are some policies that include special provisions for bouncers, who keep the party going, but can injure rowdy patrons. It is important to have all of these potential exposures covered.
If a nightclub is going to have events such as concerts or comedians and the like, there needs to be specific insurance coverage tailored for these events. Often the acts themselves will cover the costs, but this is not always the case. If there’s a stage – there should be event liability coverage.
What to Look for in a Nightclub Insurance Carrier
Every nightclub is different, but an insurance policy needs to have a few things covered no matter what.
Building & Contents Insurance
The building itself needs to be covered, as it is truly the main asset. The contents are often not covered under the same policy, but it should be added. This is especially important concerning expensive sound equipment, glassware, furnishings, and more.
There are various ways that business gets disrupted, and planning ahead could be the difference between going out of business and remaining open. For example, natural disasters, utilities going down or pandemics. Loss of revenue coverage can be a life saver for a nightclub.
Nightclubs are run by people, and employees cost money. There is healthcare to provide, there is unemployment insurance, workers’ compensation, and plenty of other factors to consider. Any reputable nightclub insurance carrier can guide you in the right direction and ensure your coverage is comprehensive.
The typical nightclub insurance policy – and this of course can vary – is about $3,000 to $5,000 a year. It all depends on the size and location and revenue of the business, but the typical coverage is for $1 million to $2 million.
Reputable Nightclub Insurance Programs
A reputable insurance underwriter will know the markets and be able to determine what is needed for each customer individually. Great plans can be purchased through RMS Hospitality Group, Osprey Underwriters and more.