Are you considering opening a new bar? If you are, you’ll already be aware of how critical obtaining insurance is when dealing with this process. After all, anything from food poisoning to arson to theft could drive your business into the ground if you aren’t covered.

Despite this, insurance costs can sometimes be higher than we’d like them to be. This is especially the case when serving alcohol is involved. So, how can you prepare your business to secure a competitive insurance quote? We’ve compiled a selection of factors you need to consider in this process and get the right deal for you. Read on to discover more and start protecting your business today!

Experience

Do you know much about running a bar and managing a team? When it comes to thinking about what carriers love to see, it’s experience. So, as the owner or manager of the bar, you need to consider your experience in the hospitality industry over any academic qualifications you may have secured. This could impact carriers’ impressions of you and modify the resulting insurance quote.

Financial Projections

Another thing carriers want to see is the hard facts and figures. You will need to display the Total Gross Revenue you anticipate for your new bar for that year, including a breakdown of relevant numbers. This could include anything from ticket sales, liquor sales, and food sales. If your calculations are too low, you will receive an audit on policy expiration; if they are too high, you could end up forking out more money than you need to. Therefore, trying to be as accurate as possible when marking your financial projections is integral.

Security Systems

You need to ensure security systems are in place within your business. If your security personnel are employees, you must make sure these individuals have secured proper security training certification. If your security personnel are contractors, they will need to have proof of their own coverage with a certificate of insurance. Additionally, it’s worth keeping in mind that carriers require you, as the bar owner, to have video surveillance along with the footage stored for at least 30 days. By paying attention to these security systems, you can protect your business and consumers.

Entertainment

When obtaining insurance, consider the type of entertainment you will be offering at your bar since this will modify the way risks are underwritten. For example, carriers may get the impression that you have a nightclub-type venue if you provide live bands and DJs. However, bands can vary. Whether you hire local bands to offer a bit of background music or famous groups to entertain people on a dancefloor all night long, this can impact your insurance quote. Hence, it’s always best to specify what kind of entertainment will be available at your venue and that all online media is consistent with this message. After all, insurance carriers frequently analyze business venues online to ensure that everything underwritten is correct. If they come to believe that something has been communicated incorrectly, they could potentially cancel your insurance policy.

Age Restrictions

Setting your bar age restriction at 21+ instead of 18+ will give you more options when it comes to getting insurance. If you really want to opt for an 18+ establishment, you can expect to pay a higher insurance cost and find it more challenging to access a carrier willing to offer terms. To secure this kind of deal, you’ll need a lot of experience in the hospitality industry to convince a carrier to get on board.

Building Information

Since your insurance will cover building-related incidents, such as fires, you must prepare and provide your building information to your insurance carrier. This includes factors such as the construction’s age, square footage, and any updates to plumbing, HVAC, roofing, and electrics.

Rounding Up

So, there you have it. Hopefully, you now feel more clued up on what you should consider when obtaining insurance for your new bar.

There are many important factors to include during the underwriting process. However, you must focus on each of these thoroughly if you want to open a new venue. Obtaining a competitive insurance quote and a carrier who is on board with your business can give the peace of mind that you are covered in the times when you need this support the most.