Bar Insurance Budgeting Basics

There is so much more than meets the eye that goes along with owning and operating a successful bar in Sugar Land, Texas, or elsewhere in the U.S. for that matter. One thing that every bar, pub, beer garden, tavern, taproom, nightclub, alehouse, saloon, or sports bar that hopes to become successful needs is a solid insurance foundation.

Don't make the mistake of thinking you can't afford insurance because you're just getting started or that there are more important things to invest in for your bar. The fact is, you can't afford to be without bar insurance, especially bar liability coverage, in this litigious day and age. The good news is that insurance is more affordable than you've been led to believe – if you choose wisely and budget accordingly.

Understand How Bar Insurance Rates are Influenced

The more you understand about insurance rates and the things that affect them, the better able you are at making bar insurance budgeting decisions that will help keep your insurance rates within your comfort zone.

These are a few issues that can influence your yearly insurance rates:

• The type of establishment you operate. In the aftermath of a natural disaster or damage from a manmade hazard, there's a lot more involved in rebuilding a swanky nightclub with leather seating and an extensive collection of top shelf liquors and wines than dealing with a small bar where people drop in after work for burgers and beer.
• Location, location, location. Location affects many things when it comes to owning a bar – one of those is the cost of your insurance. Bars located in high-crime areas, for instance, will face higher insurance rates, all things considered, than those located in trendy, well-lit areas of town frequented by upper middle class or wealthy patrons.
• Yearly revenue. The amount of money your bar earns affects how much insurance companies will be called upon to replace lost income in the aftermath of a covered event.

Types of Insurance Bar Owners Need

The fact that you're operating a bar places you at a fairly unique risk for certain liability issues, which affects your overall insurance costs. General liability insurance alone isn't going to be sufficient to meet all those needs.

These are a few types of insurance coverages bar owners in Texas should very strongly consider incorporating into their budgets.

• Liability Coverage for Assault and Battery
• Building Coverage
• Business Interruption Coverage
• Business Personal Property Insurance Coverage
• Cyber Liability Insurance (if computers are used for any part of your business)
• Employee Theft Insurance
• Equipment Breakdown Coverage
• Food Spoilage
• Flood Insurance
• Liquor Liability Insurance
• Product Liability Insurance
• Unemployment Insurance
• Workers Compensation Insurance

There are other types of insurance you may choose to provide for your employees that may not be required by law in the state of Texas. Medical insurance, for example, is only required for businesses that have 50 or more full-time employees and disability insurance is optional for business owners in Texas. Though there is nothing wrong with offering these types of insurance protections to your employees.

Mitigating Bar Insurance Risks

To help with budgeting for your bar insurance, work with an independent insurance agent to discuss ways to reduce your costs, such as changing your deductibles, bundling policies, and updating security and safety features for the bar.

Working with an independent insurance agent who has specific experience with restaurants and bars means that you can get advice and guidance on risk management steps you can take in your business that will reduce your overall insurance costs from year to year.

Work with an Insurance Agent that Specializes in the Food and Beverage Industry

There are all kinds of specialty insurance products that are wise investments for bars, nightclubs, pubs, etc. Insuring a bar in Texas means that you need to work with an agent that understands the food and beverage insurance industry, and what your legal responsibilities, as bar owner, are.

Your independent insurance agent that specializes in the food and beverage industry can walk you through the bar insurance products that are most important for your needs, while helping you avoid insurance products that are overpriced for your needs or completely unnecessary for your business.

Don't wonder if you have the insurance protection your business needs. Get a free quote for bar insurance today from us here at the Food & Beverage Insurance Agency (FNBIA) to make sure you have all your bases covered when it comes to insurance. The peace of mind alone is worth its weight in gold.