top of page
  • nickschrader100

Do Bars And Restaurants Need Coverage

Restaurants and bars provide their owners with a fantastic potential to generate big revenues, but that possibility is not without risk.

Restaurant and bar owners confront the same risks of disaster and legal liability as any other business owners—fires, property damage, slip and fall lawsuits, and so on—but they also face specific risks due to the nature of their operation.

Your bar or restaurant takes a risk every time an order is served. You may be sued for the food you served that made a client ill, or you could be held accountable for the annoyance created by a drunk customer you gave alcohol.

Common Insurance You Need for Your Bar or Restaurant

Purchasing business insurance may help you escape bankruptcy if you have to pay for other people's medical costs, legal fees, or repair fees for your damaged property. Here are some examples of insurance you might buy:

General Liability Insurance

General liability coverage may cover typical risks such as customer injuries, customer property damage, and advertising injury.

Property Insurance

Your insurance company may cover your property in the event of a fire or other accidents. However, it may not include natural calamities such as floods and earthquakes.

Liquor Liability Insurance

This insurance is critical for alcoholic beverage-serving establishments such as bars, nightclubs, and restaurants. This coverage pays for legal fees, settlements, and medical expenses if alcoholic drinks are supplied to a drunk individual who later causes injury to others or their property.

Commercial Auto Insurance

Commercial car liability insurance is required for restaurants that use vehicles to serve meals to clients or bars that employ delivery vans to transport alcohol and other supplies between locations. This insurance may cover medical claims and property damage if your bar's car is involved in an accident.

Worker's Compensation Insurance

Worker's compensation insurance may cover your employees' medical bills, lost earnings, and litigation from employee injuries.

Other Available Coverage for Your Business

Aside from the standard insurance coverage, here are several unusual insurance policies you might not think you need for your business:

Cyber Liability Insurance

Restaurants accept credit cards, which puts you at risk of a cyber incident since it makes you an appealing target to hackers.

Suppose your customers' personal financial information is taken due to a cyber-hack. In that case, your company may face a class-action lawsuit from consumers who claim you failed to take reasonable precautions to secure that information. These claims should be covered by cyber liability insurance.

Food Spoilage Insurance

Power outages or even equipment malfunctions can result in damaged food worth thousands of dollars. This insurance may assist in covering the expense of lost food inventory and restocking your freezers.

Loss of Income Insurance

A fire, storm, or other extreme weather catastrophes may compel you to close your doors while repairs or rebuilding are done. This coverage may offer financial assistance when your company is closed, allowing you to cover bills and staff wages.


Owning a business is already risky, so you must take preventative measures to ensure that your firm does not fail. If you run a bar or restaurant, make sure you have all of the necessary insurance to limit the risks associated with your chosen industry.

At Second Western Insurance Services, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (818) 952-5203 or Click Here to request a free quote. Any coverage discussed is not guaranteed. Contact us today to go over your specific needs and we are happy to help you find a policy that works for you and your budget!

bottom of page