If your clients own or manage a small business of any kind, it’s imperative to ensure that their assets and property are financially protected. Nightclubs are no exception; inviting risks beyond the standard exposure a standard restaurant or bar would have, nightclub owners must have the right Nightclub Insurance policies in place.
In order to understand the need for nightclub insurance however, we must take a look at the risks involved with opening or running one. A few years back, an article was published on Business Know-How that stated the failure rate for business start-ups can often be contributed to poor planning; this includes not assessing risks appropriately.
Location is Everything
Location is important for a few different reasons. Choosing a upscale neighborhood for a casual nightclub could be detrimental, however if the nightclub is aptly themed it could perhaps still do well. Another reason location matters is for security purposes. Frequent fights or criminal activity not only drives away customers, but also creates a dangerous environment for the clientele who do come to the facility.
Property Needs Protection
Common property issues include inadequate access to first aid and/or accident hazards. Other safety issues include the lack of smoke and fire alarms, or proper electrical and gas installation. All of these factors bear significant potential financial implications; not to mention open the door to potential lawsuits if a patron or employee is injured.
Awareness of Community Issues is Paramount
It’s becoming more and more common for neighborhoods to form groups and rally against certain types of nightclubs; especially those that provide adult entertainment, or invite a lot of noise or loitering. The most financially prepared club can find themselves at risk if they don’t consider these factors when choosing a nightclub location.
At RMS Hospitality Group, we understand the unique insurance needs of nightclub owners, and know that when you are looking for liability insurance for your nightclub clients, not only do you want a solid product from a reliable carrier for this industry, you want a broker that will collaborate with you to get submissions on target the first time. For more information about our products, services, and industries served, please contact us 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.
