Local bars have a strong foundation within their communities and with loyal clientele. Unfortunately, even the most loyal patrons can't help a business during an emergency closure. Agents providing bar owners with insurance must stress the importance of business interruption coverage within their overall package.
There will always be inherent risks to running any business, including those within the hospitality industry. Bar and tavern insurance includes policies designed to protect bar owners against the unexpected.
Most companies have no control over the events that could force them to close their doors for anywhere from a day to several months.
While a risk management plan can reduce the likelihood of temporarily closing the bar, it's not foolproof. Some common risks include:
Many bar owners have a level of confidence, but agents should be prepared to explain the risks and how they can impact profits. For example, a flood could result in closing the bar down for weeks while paying for renovations. Without insurance, most companies wouldn't be able to stay afloat.
When a company has to close its doors for an emergency, it doesn't stop the bills from coming in. Business interruption insurance helps bar owners pay the rent and mortgages on their buildings, employee payroll, loan payments, taxes, and other operating expenses.
Likewise, insurance policies can consider the bar's revenue stream and help cover the revenue lost while the business closes.
In some cases, bars will have to conduct extensive repairs on their buildings or temporarily relocate until they can find a new home for the bar. Insurance can cover the expenses to move to a new location and the extra costs, like the rent of a temporary space. Additionally, when the staff moves back into a renovated space with new equipment, business insurance may be able to cover the training costs.
All business owners, including bar owners, should have a business continuity plan that includes business interruption coverage. Business continuity plans allow companies to thrive while addressing vulnerabilities, weaknesses, and potential threats.
Encourage business owners to document income, expenses, and all operation costs. Bar insurance should seamlessly integrate with any business continuity plan.
Bars need to track their revenue and expenses carefully to receive adequate coverage for losses. When submitting a claim, owners must submit all of their documentation, including billing statements, receipts, and payroll documents.
Bar insurance is an insurance package with coverages catering to a restaurant's unique liabilities. When the unexpected happens, restaurant owners may find themselves forced to shut their business down for an unknown period. Business insurance covers lost income and helps companies maintain financial stability.
Contact us at RMS Hospitality Group to learn more about our hospitality packages.
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.
