News

Do you know the difference in exposures between restaurants and bars/nightclubs? Bars/nightclubs can have live entertainment, a dance floor, DJ and 40% or more of their revenue derived from liquor sales. This is an important distinction when it comes to properly insuring these risks.

The most common claims in a restaurant are slip and fall or a food borne illness. However, claims for bars & nightclubs typically result from assault and battery or liquor liability. Assault and battery claims can result from patrons getting into a fight with each other or a patron claiming a security person or other employee injured them. One assault and battery allegation could easily result in a $50,000 claim. Insurance agents need to pay particular attention to their clients who fall into the ‘bar/nightclub’ category to make sure their liability policy includes assault and battery coverage.

In states with “dram shop” laws, an agent should include liquor liability for any bar or restaurant selling alcohol. Dram shop laws make the entity or individual who provided the liquor statutorily liable. All restaurants, bars and nightclubs should carry liquor liability if they serve alcohol.

Here are a few loss control tools these businesses can use to protect themselves:

• Surveillance cameras – inside and outside so that activities can be monitored. If a patron presents a claim, the camera will record the incident.
• Keep an activity log – note the date, time, and nature of ANY incident and the patron’s condition. This may be very helpful as a defense tool in a liquor liability claim.
• Require formal liquor serving training for bartenders and wait staff. This not only saves your client money on their liquor liability premiums but is also an excellent loss control measure.
• Use hand stamps or wristbands to identify patrons eligible to drink.