Sports Bar Business Insurance
Getting insurance for your sports bar business is essential.
This is because sports bar businesses need to be protected against a variety of different claims, such as those that relate to alcohol and food poisoning, property damage, and bodily injuries.
For example, a fight in your bar causes patron injury and property damage, or customers report getting food poisoning after eating at your bar.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Sports Bar Business
General liability insurance is — generally speaking — one of the most important insurance policies for sports bar businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Even so, your sports bar business will likely benefit from purchasing additional coverage.
This is because it will be privy to a variety of different risks that are not covered by a general liability policy, such as:
- Negligent acts or omissions committed by an employee: Errors and omissions insurance
- Lost income due to a fire or other covered event: Business interruption insurance
- Property damage or theft of bar equipment: Commercial property insurance
- Food or alcohol poisoning: Product liability insurance
- Damage as a result of an intoxicated client: Liquor liability insurance
As of 2024, there are two different types of business insurers that you can choose as a small business owner:
- Traditional brick-and-mortar insurers: Popular choices for small businesses include Nationwide and CNA.
- Online insurers: Popular choices for small businesses include Tivly and Next Insurance.
We recommend going for an online insurer as a small business in the vast majority of cases. This is because online insurers have lower operating costs, and can thus offer personalized coverage at a more affordable rate.
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Cost of General Liability Insurance
On average, sports bars in America spend between $500 - $1,200 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a sports bar business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Sports Bar Business
Example 1: When a customer returns after closing to claim a forgotten jacket, he slips on the wet floor and shatters his elbow. He asks you to cover his hospital bills. General liability insurance would pay for the customer’s medical expenses.
Example 2: As a group of investors inspects your new shelving display behind the bar, one of them reaches for a bottle and accidentally pulls down the entire display. The crash seriously injures several people. General liability insurance would pay for the investors’ accident-related medical bills.
Example 3: A local rival believes your new logo infringes on their copyright and sues. General liability insurance would cover your legal fees and any damages awarded in a settlement.
Other Types of Coverage Sports Bar Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.
Commercial Property Insurance
You’ve made major investments to outfit your bar with the most comfortable furniture, high-tech gadgets, and other important business equipment. If you own the building in which you operate, you’re responsible for all business-related property housed there in the event of a fire, burglary, or natural disaster. Commercial property insurance would cover the cost of repairing or replacing your furniture and other business equipment after an accident so you can recover quickly.
Business Interruption Insurance
If a fire, tornado, or other major disaster forces you to temporarily close, business interruption insurance would help cover your bills and financial losses until you can reopen. You can usually purchase business interruption insurance as part of a business owner policy or BOP.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your sports bar business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Sports Bar Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
In most cases, yes.
Getting business insurance before you start your sports bar business can go a long way in ensuring that you do not have to defend yourself against a claim or dispute without being covered, which can save you tens of thousands of dollars.
Not necessarily. Certain exceptions may be written directly into your sports bar business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.