Bar and tavern owners should contact an insurance agent at some point in time during the opening or purchasing process. After insurance is purchased, however, many owners don’t give much thought to their establishment’s policy. While this is understandable in light of all that there is to do when running a bar or tavern, there are certain times when you should review your establishment’s bar insurance policy with a knowledgeable agent.
Are There Specific Times I Should Review My Establishment’s Bar Insurance?
When Offering Food for the First Time
There’s no need to consult with an agent every time you tweak your establishment’s menu slightly, but you should contact your agent when starting to offer food options for the very first time.
If your establishment hasn’t previously served food but will be doing so now, you’ll be investing in equipment and ingredients. The property coverage in your establishment's bar insurance policy ought to be updated so that these new items are properly protected.
You might also need to get product liability coverage if your business doesn’t already have it. In the food service industry, this coverage is commonly used to insure against certain illnesses that may be spread by contaminated drinks or foods. Your establishment is already exposed to some of this risk by serving beverages, but the amount of exposure normally increases once you start serving foods.
When Expanding the Customer Seating Area
Should your establishment grow so that you can expand the customer area or purchase a larger facility, you’ll want to talk with an agent about what coverages in your tavern insurance policy need to be updated. There are several protections that may require adjusting.
First, you’ll likely need to obtain more commercial property coverage. Make sure both the new building and any additional equipment (e.g. chairs, tables, decorations, etc.) are properly covered.
Second, your general liability coverage may need to be adjusted. In many cases, general liability protections and premiums are based partly on the square footage of a business’ facilities. Since you’re increasing square footage, you can expect your general liability rate to increase slightly. An independent agent can help you compare policies from different insurers, which may minimize and rate increase that’s assessed.
Finally, you might want to increase limits on other coverages. When a business serves more customers, the potential cost of a major incident goes up. Raising limits might offer you more protection against large claims, and the associated change in premium may be minimal.
When Making Major Staffing Changes
Should you ever make major staffing changes, either increasing or decreasing your establishment’s workforce, you ought to notify your insurance agent. There may be changes to your establishment’s workers compensation coverage that need to be made, and any employment practices liability coverage that the business maintains might need to be altered.
When the Policy Renews
Even if your establishment makes no major changes, it’s still a good idea to review the establishment’s tavern insurance at least once a year with an independent agent. During a review, an independent agent can both make sure your establishment is properly protected and get quotes from other insurance companies. If any offer comparable coverage at a lower rate, your business may be able to switch and lower its premiums.
The most convenient time to conduct an annual review is when your establishment’s tavern insurance is up for renewal, but you can review coverage any time of the year.
Review Your Establishment’s Bar Insurance
To review your establishment’s bar insurance with an experienced and independent insurance agent, contact us at World Insurance Associates. All of our agents are independent, and many of them specialize in tavern insurance.