Insurance Coverage for Bars and Nightclubs
A nightclub (also known as a discothèque, disco, dance club or club) is an entertainment venue and bar which serves alcoholic beverages that usually operates late into the night. A nightclub is generally distinguished from regular bars, pubs or taverns by the inclusion of a stage for live music, one or more dance floor areas and a DJ booth, where a DJ plays recorded music and where coloured lights illuminate the dance area.
Who Needs Nightclub Insurance?
If you own or manage a nightclub or similar establishment, it is important that you have the right coverage in place to ensure that you are fully covered in the event of a claim. Some organizations that must have or should consider this insurance coverage include, but are not limited to, the following;
- Nightclubs
- Bars
- Pubs
- Private Clubs, Social Clubs or Legions
- Reception Halls
- Taverns
- Restaurants
What Does Nightclub Insurance Cover?
Nightclub insurance is most commonly found as an extension to an existing commercial general liability insurance policy. This is important coverage as it includes cover for equipment breakdown and damages to persons and property damage caused by patrons when customers consume alcohol at your establishment and/or allege that they were over-served at your establishment. Also, as many nightclubs employ bouncers to screen prospective club-goers for entry, it is common for a nightclub insurance policy to include coverage for forcible ejection. Rates of insurance will vary based on the type of business, location, amount of sales and business history.
Common Nightclub Insurance Claims
Common nightclub insurance claims examples to illustrate the need for this insurance coverage:
- An intoxicated patron trips and falls down a flight of stairs at your establishment and injures themselves.
- A patron consumes alcohol at your establishment, and on the way home is involved in an at-fault car collision to which alcohol was a contributing factor.
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