As the year winds down, bars and taverns are buzzing with holiday celebrations — but behind the scenes, there’s work to be done to guarantee they’re ready for the year ahead. For insurance agents, the end of the year is the perfect time to step in with a comprehensive audit of bar and tavern insurance. By revealing coverage gaps and evolving risk exposures, you can help protect businesses from unexpected risks and give them the confidence to thrive in the new year.
A thorough audit should include checking for several types of insurance to ensure comprehensive coverage.
General liability insurance is essential for bars and taverns, protecting against claims of bodily injury or property damage that may occur on the premises. Given the dynamic environment of such establishments, it's vital to assess whether existing coverage adequately addresses potential incidents like slip-and-fall accidents or third-party property damage.
This coverage safeguards businesses from claims related to the products they serve, such as food and beverages. An audit should evaluate whether the policy covers potential risks like foodborne illnesses or issues arising from the services provided.
Serving alcohol introduces specific liabilities. Liquor liability insurance protects establishments from claims resulting from alcohol-related incidents, such as over-serving patrons or serving minors. These risks don’t always end at the door — bars and restaurants can also be held responsible for harm caused off-premises, like if an intoxicated patron gets into an accident. As such, comprehensive liquor liability coverage is essential to shield businesses from potential lawsuits and financial losses.
Regular audits offer several advantages that contribute to the stability and success of hospitality businesses.
Audits can reveal areas where current policies may be lacking, such as insufficient coverage for assault and battery incidents or inadequate excess liability limits. Addressing these gaps is essential to mitigate potential financial risks.
Regular audits contribute to a proactive risk-management strategy by keeping insurance coverage aligned with the business's evolving needs. This approach helps bars and taverns anticipate potential risks and implement measures to prevent them.
Aligning insurance coverages with actual business needs can lead to cost savings. It ensures that businesses are not overpaying for unnecessary coverage while maintaining adequate protection.
With the right approach, year-end insurance audits can set businesses up for success for the year ahead. The following strategies allow for a smooth process that results in the best coverage for bar and tavern clients.
Work closely with business owners to fully understand their operations. Talking to them about their day-to-day activities, special events, and any changes over the year can uncover risks they might not realize exist. This teamwork helps create policies that are accurate and fit the business’s needs.
The hospitality industry is always changing. New trends, regulations, or business expansions — like adding outdoor seating or hosting live events — can affect insurance needs. Regularly updating policies allows businesses to stay protected and avoid surprises down the road.
Use your knowledge to spot risks clients might miss, like inadequate liquor liability limits or missing assault and battery coverage. Providing helpful advice and clear recommendations builds trust and ensures that clients get the protection they need.
Conducting end-of-year insurance audits is vital for bars and taverns to ensure their coverage is comprehensive and tailored to their specific needs. Insurance agents have an opportunity to proactively engage with their hospitality clients to schedule and conduct these audits, reinforcing their businesses' financial and operational stability.
For more information on tailored insurance solutions for the hospitality industry, contact RMS Hospitality Group.
At RMS Hospitality Group, our expertly crafted policies are written specifically for the hospitality industry. We offer custom-tailored solutions to meet any venue’s specific needs. For more information, contact our knowledgeable experts today at (888) 359-8390.
At RMS and associated firms, business continues as usual. Our staff is remote-capable and available to handle all partners, brokers, and insureds at the present time.
