In the bar industry, things are never status quo. Your clients’ risk exposures shift constantly — whether from expanded operations, new technology, or changes in local regulations. As an insurance agent, it’s crucial to offer your bar clients periodic insurance reviews — annually at a minimum, or more frequently if circumstances change. Outdated policies can leave them vulnerable to financial loss, compliance issues, and liability claims.
Regularly assessing bar and tavern insurance ensures their coverage remains comprehensive, aligns with industry standards, and addresses emerging risks. By proactively reviewing policies, you help safeguard their businesses from gaps that could lead to costly setbacks.
Bars and taverns operate in a high-risk environment. A single oversight in coverage could lead to significant financial consequences. Here’s why an annual insurance check-up should be a priority:
Changing revenue and operations: Bars may experience fluctuating income due to seasonal demand, expanded services, or major events. Business income limits must be reviewed regularly to ensure accurate coverage.
New technology risks: Many bars now rely on digital ordering, payment systems, and online reservations, introducing cyber risks that older policies may not cover.
Liability concerns: With alcohol service, high foot traffic, and live events, liability exposures evolve. It’s essential to confirm that bar and tavern insurance accounts for these changing risks.
By positioning yourself as a trusted advisor who ensures that your clients’ policies are up to date, you not only help them avoid financial pitfalls but also strengthen your role as an indispensable partner in risk management.
When conducting a bar and tavern insurance review, focus on these core areas:
Policy coverage adequacy: Ensure that existing coverage matches the bar’s current size, operations, and risk profile. Has the business added entertainment, expanded seating, or modified service offerings? Each change can affect coverage needs.
Liability limits: Confirm that limits are sufficient to cover potential claims. The higher the guest volume and alcohol sales, the greater the exposure to lawsuits.
Specialized coverages: Evaluate whether additional coverages — such as liquor liability, assault and battery coverage, business interruption, or cyber liability — are necessary.
For more insights into best practices for bar and tavern coverage, check out 4 key aspects of restaurant and bar insurance coverage.
Many bar owners don’t realize they have significant gaps in their bar and tavern insurance until it’s too late. Agents should pay close attention to these commonly overlooked areas:
Underinsured property: Equipment, furnishings, and temporary event setups may not be fully covered under outdated policies. Ensure clients have accurate replacement cost coverage.
Business income limits: If revenue estimates were adjusted downward during COVID-19 and haven’t been updated, owners may be underinsured in the event of a shutdown.
Cyber liability: With increased reliance on digital transactions, bars face growing cyber threats. Many older policies don’t include cyber liability coverage, leaving businesses exposed to data breaches or hacking attempts.
To offer maximum value to your bar clients, take a structured approach to policy reviews:
Gather operational data: Document any recent changes in revenue, staffing, technology, and property improvements.
Assess current policies: Compare existing coverage against industry benchmarks and your client’s specific risk profile.
Identify gaps and recommend solutions: Ensure that bar owners understand their potential vulnerabilities and the importance of closing coverage gaps.
Customize policies: Tailor bar and tavern insurance to address both day-to-day risks and long-term business goals.
An annual bar and tavern insurance review is essential for ensuring your clients stay fully protected. Regular check-ups allow bar owners to adjust their coverage in response to industry shifts, business growth, and evolving liability concerns.
As an insurance agent, your proactive guidance helps clients avoid costly surprises and reinforces your value as their go-to risk management expert. By offering regular insurance reviews, you demonstrate your commitment to their success while ensuring their policies remain effective and up to date.
At RMS Hospitality Group, we specialize in insurance solutions tailored to the unique needs of bars and taverns. For more information, contact our knowledgeable experts today at (888) 359-8390.
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.
