Special occasions in bars and taverns are exciting times that can lead to a significant boost in business. However, as an insurance agent, it's essential to recognize that these events also introduce unique risks for your bar and tavern owner clients. Holiday parties, themed nights, and live music events generate more revenue and foster a vibrant community spirit, yet they also bring heightened liability challenges. Ensuring that bar and tavern insurance is tailored to cover these specific circumstances is crucial.
Special events often involve increased foot traffic, temporary installations, and a surge in alcohol consumption — all factors that require dedicated planning and coverage adjustments to protect the venue and its reputation.
When bar and tavern owners host special events, the usual dynamics of their establishments change dramatically. With the surge of guests, there is an increased strain on entryways, exits, and common areas, which can lead to slip-and-fall incidents and crowd-related injuries.
Additionally, the decorative setups and unique installations that enhance the atmosphere during these events might not be covered under standard property policies. Live music performances, themed parties, and other entertainment formats can further escalate risk factors by introducing amplified sound levels, energetic crowds, and unpredictable behavior. Advising your clients to assess these risks during the planning stages is a proactive step that can help minimize potential liability exposure.
To safeguard their venues during special occasions, your clients need to carefully review and tailor key insurance policies. Consider emphasizing the following adjustments:
General liability insurance: Ensure liability limits are sufficient to cover claims that may arise from larger, unpredictable crowds.
Property insurance: Verify that coverage extends to temporary decorations and installations, which might not be part of the standard setup.
Liquor liability insurance: Given the inevitable increase in alcohol consumption during celebrations, a critical review of this policy is necessary to manage potential alcohol-related incidents.
Each of these policies should be scrutinized for any gaps in coverage. A thorough review can ensure that both everyday operations and occasional high-risk activities are adequately protected.
Beyond the standard policies, enhancing insurance coverage for one-off events can significantly improve risk management for bar and tavern owners. As an insurance agent, you can guide your clients through the process of modifying existing policies to better address event-specific risks. Some strategies to consider include:
Adjusting policy clauses to cover third-party contractors and entertainers, whose services are essential to the success of special events
Collaborating with a knowledgeable broker or risk consultant to add supplemental coverage that addresses unique scenarios, such as high-profile gatherings or seasonal festivities
Incorporating risk-management strategies like detailed safety planning sessions and on-site emergency protocols to mitigate potential hazards before they escalate
These modifications fill any coverage gaps and provide a stronger safety net during high-risk periods.
The dynamic nature of special events requires a customized approach to insurance for bar and tavern owners. As an insurance agent, your role is critical in guiding clients through the process of tailoring their policies to meet the challenges posed by increased crowds, temporary setups, and amplified liability risks. By proactively enhancing coverage and regularly reviewing policy clauses, you help ensure that every celebration remains both memorable and secure.
Embrace a forward-thinking approach — plan thoroughly, assess risks diligently, and secure optimal coverage for every event. With the right RMS Hospitality Group insurance strategy in place, your clients can focus on delivering exceptional hospitality while confidently managing the risks associated with special occasions.
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.
