A pub, which is short for public house, is a neighborhood bar that serves alcoholic drinks and meals on occasion. The term pub originated in the UK where they were known as being open to the public — as opposed to private bars. In the United States, pubs are similar to bars and taverns in how they operate and what they serve. Operating a pub can be a successful business, but it also poses its share of risks. Common risks for pubs include damage to your pub from unforeseen events like fire, especially since alcohol is flammable, liabilities if a customer is injured while in your pub, and injuries caused by intoxicated patrons. To protect these risks, you should get various pub insurance policies for comprehensive coverage.
Types of Pub Insurance
Due to the bevy of risks a pub might face, you have your choice of business insurance policies. Consider your risks when choosing the right types of business insurance.
One of your biggest risks is that of injuries to your customers, therefore you should have a general liability insurance policy. General liability will offer coverage if a customer was to injure themselves on your property. For example, if there is a spill on the slippery floor of your pub and a customer slips and falls, it could cause a broken ankle or worse. The medical costs following this accident and any impending damages are covered by the general liability insurance policy.
Liquor liability insurance can be a solo insurance policy or added on to other liability policies, such as general liability or a package policy. It offers your business protection from accidents or injuries caused by an inebriated patron. It is a vital policy to have in your pub. If a customer is intoxicated and they fall over, knocking the side of their head on a barstool, they could need stitches and sue you for damages. The medical costs and any lawsuits would be covered by liquor liability insurance. They can also sue you if an innocent bystander is injured by a patron that became intoxicated at your pub.
Product liability insurance is often part of general liability, but you may need it as a stand-alone policy. This insurance policy offers your tavern coverage if a customer was to experience an illness or damages from the goods you sell. For example, if you serve a mixed drink with an ingredient they weren’t aware of that caused a severe allergic reaction, they may need a visit to the emergency room. Any medical costs associated with this illness would be covered by product liability insurance.
Pub Spoilage Insurance
Spoilage insurance is an essential pub insurance policy to have if your pub serves food of any kind. Food can spoil if labeled incorrectly, which could cause your customers to become ill with food poisoning. Not to mention the damages it causes, spoiled food that is thrown out can cost your business a lot of money to replace. Both of these occurrences can be covered by a spoilage insurance policy.
Pub Business Auto Insurance
Business auto insurance is a type of commercial auto policy to cover vehicles used for business purposes. Any time you use your vehicle for things like picking up liquor, visiting your vendors, having business meetings, or the like, the policy covers your vehicle. It can include damage to your vehicle and other vehicles involved in a car accident as well as bodily injury from that accident. An optional coverage includes adding theft and vandalism as well. This can be beneficial if you have boxes of liquor in the back seat of your car while attending a meeting, and they are stolen.
Pub Employee Theft Insurance
An unfortunate risk you might have to face is that of employee theft. If an employee steals money or supplies from your pub, you could experience a significant loss. By getting employee theft insurance, you will have ample protection from this type of employee dishonesty.
Your pub is at risk for damage, such as from fire, flood, natural disasters, or extreme weather conditions. Fire is one of the biggest risks to your property due to the flammable nature of the alcohol in your establishment. For this reason, you should have business property insurance to cover the various costs. Business property will help pay for repairs to the building, repair furniture indoors, replace items you lost, and provide income coverage while the repairs are being done.
Pub Business Owners Policy (BOP)
If you would like more than one coverage in a single policy, you can get a package policy like the business owner’s policy (BOP) The BOP is excellent for combining multiple policies, such as building and contents, employee dishonesty coverage, electronic data, equipment breakdown, and general liability. If you have an employee who steals from you along with having a customer that gets injured in the bar, both of these instances are covered by the BOP.
Most state require employees to be covered by worker’s compensation; even if it isn’t required in your state, your employees should still have this coverage. It offers protection if an employee gets a work-related injury, such as a bartender cutting themselves on broken glass. It will cover their diagnosis and medical expenses as well as lost income if they are gone from work for an extended period of time as a result of the injury. This policy also offers your business protection because it avoids a lawsuit from the work-related incident.
Pub Crime Insurance
There are a number of crimes that could occur in your tavern and each of them can be protected with a crime insurance policy. Crime insurance is for crimes like employee theft or embezzlement, vandalism or theft by customers and passersby. If your bar is vandalized, you won’t have to pay for the damages because the crime insurance covers this type of crime.
Pub Business Interruption Insurance
Business interruption insurance is helpful if ever you have damages to your pub and you need repair work done. While the repairs are being completed, you will most likely have to shut down your pub, which can result in a loss of business income. Business interruption insurance helps you cover some of these losses.
Lastly, you should get an equipment breakdown insurance policy. The electronic equipment used in your pub, like cash registers and computers or cooking and refrigeration equipment, are essential to keeping your business running. If they break down, you would have to pay for them and possibly lose business as a result. Equipment breakdown insurance helps cover these losses as well.
Failing to protect your pub from expected and unforeseen risks could cause more than a loss of business income; it could mean closing down your bar or at the very least, experiencing a loss of your reputation. Avoid this by purchasing pub insurance that covers each and every risk you might face.