When clients have a lounge or other establishment designed for social engagement and to enjoy good food, drinks, and company, they have unique needs regarding insurance. While the good times may easily flow, so does the potential for negative repercussions if anything goes awry. Lounge program insurance provides a way for businesses to protect themselves from an array of situations, whether it's third-party damage or customer slip-and-fall incidents. Although every company has nuances, any lounge should consider getting lounge program insurance coverage, including general liability, excess liability, and liquor liability.
As establishments with heavy foot traffic and potentially intoxicated clientele, lounges, bars, and nightclubs have varied risks that only some insurance packages will cover. People coming and going increases the chances of an accident, injury, or other liability issue arising.
Lounge program insurance is a specialized coverage that offers a tailored approach to help owners keep operations running smoothly regardless of unexpected and potentially costly situations.
Regardless of the industry, any business should have general liability coverage. Because lounges often face higher risk factors, this coverage remains a key to successfully navigating the unexpected. Liability protects business owners from third-party claims, including bodily injury, property damage, and personal injury, such as slander.
Anytime alcohol gets factored in, it creates the potential for negative consequences. If an intoxicated customer starts a fight and injures another person, the establishment may hold some liability for the injuries. Lounge program insurance not only covers the associated medical expenses but also helps cover costs associated with administrative tasks, associated property damage, and judgments and court costs from a lawsuit.
For businesses that serve or sell alcohol, liquor liability provides a critical layer of protection. While developing a comprehensive plan for a lounge, insurance agents should highlight the importance of this additional coverage.
Many businesses may focus on possible on-site incidents, such as an intoxicated customer damaging another patron's belongings or assaulting them. Liquor liability insurance goes beyond the walls of the establishment. If an over-served customer causes injury in a traffic accident, the injured parties may also have grounds to sue the lounge. This additional coverage works as a safeguard against such instances.
Lounges should also consider getting excess liability coverage. Like having an additional policy over an existing one, it provides the financial protection needed when a claim exceeds a policy's limits.
For lounges, that extra coverage may provide the key to staying afloat after an expensive lawsuit. If a fight breaks out and a patron sustains extensive injuries that require surgery, the medical and legal costs can get astronomical. If a general liability claim only covers $1 million and the court settles on $1.75 million, that means paying $750,000 out of pocket.
Insurance agents must clearly understand the business to help ensure clients have the right coverage and amount of it. To help determine that, key factors include prior claims, location, type of establishment, and annual sales.
As much as a lounge owner may love building and growing a business, it comes with many risks. Lounge program insurance works to help safeguard a bar or lounge from the complex and unexpected incidents that may happen. Assisting owners to get insurance that includes general liability, liquor liability, and excess liability provides better all-around protection.
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.
