HOW MUCH IS BUSINESS INSURANCE
for Bars and Taverns?

The cost of insurance for a bar or tavern depends on its size, menu, payroll, and state liquor laws – among other factors. But that doesn't mean we can't give you a rough estimate of bar insurance costs.

Let's look at what a small bar might spend on its insurance coverage. The prices quoted below are only estimates, of course. To find out what business insurance will cost for your bar or tavern, fill out an online application, and one of insureon's agents will send you personalized quotes.

HOW MUCH IS
General Liability Insurance?

General Liability Insurance

General Liability Insurance is one of the most common business insurance policies. It covers lawsuits from non-employees (e.g., customers or vendors) that sue you over advertising injuries, slip-and-fall accidents, and property damage. Almost every bar has this insurance because it protects establishments from their most common (and unavoidable) liabilities.

General Liability Insurance for a small bar costs from $1,170 to $3,780 in annual premiums.

Median policy premium:

$1,170 - $3,780

Median policy limit:

$2 million

Median policy deductible:

None

General Liability Insurance doesn't cover injuries and accidents related to alcohol consumption – these can be covered by Liquor Liability Insurance (see below).

To see how the cost of General Liability Insurance for bars and taverns compares with other industries, visit Insureon's General Liability Insurance Cost Analysis New browser window icon..

HOW MUCH IS
a Business Owner's Policy?

Business Owner's Policy

Some small businesses can get a discount on their insurance by buying a Business Owner's Policy, which bundles General Liability and Property Insurance into one package. Property Insurance reimburses you for property loss related to fire, burglary, and some storms. It can cover just about any commercial property your company owns, including buildings, furniture, tap systems, glassware, inventory, and more.

The average bar can expect BOP premiums to cost from $2,547 to $7,520 annually.

Median policy premium:

$2,547 - $7,520

Median policy limit:

$2 million

Median policy deductible:

$1,000

HOW MUCH IS
Liquor Liability Insurance?

Liquor Liability Insurance

Liquor Liability Insurance is almost a necessity for bars and taverns – in fact, some states require it before bar owners can get a liquor license. These requirements are part of a state's dram shop laws, which can hold bars responsible for selling alcohol to an intoxicated patron who ends up hurting someone or damaging property. (Not all states have dram shop laws, however. For details, see our eBook, Liquor Liability Insurance? I'll Drink to That.)

Depending on where you live, you could be sued if a patron has too much to drink and crashes their car. Fortunately for bar owners, Liquor Liability Insurance covers these lawsuits.

To protect their liquor liabilities, many bars pay $966 to $3,360 in annual premiums.

Median policy premium:

$966 - $3,360

To get an idea of what deductible and policy limits are available for your bar, talk to your insurance agent.

The cost of Liquor Liability Insurance varies a lot from state to state. For instance, insurance costs in Houston can be significantly higher than those in Washington D.C. because of stricter dram shop laws in Texas.

HOW MUCH IS
Umbrella Insurance?

Umbrella Insurance

Umbrella Insurance (Excess Liability Insurance) can pay for lawsuits that exceed the limits of three small business insurance policies: General Liability, Auto Liability, and Employer's Liability (part of Workers' Comp). For example, if a lawsuit and legal fees cost more than your GL Insurance policy can cover, an Umbrella Insurance policy can cover up to $1 million in extra legal expenses.

Umbrella Insurance policies cost the typical bar or tavern between $400 and $957 in annual premiums.

Median policy premium:

$400 - $957

Median policy limit:

$1 million

Median policy deductible:

None

To see how the cost of Umbrella Insurance for bars and taverns compares with other industries, visit Insureon's Umbrella Insurance Cost Analysis New browser window icon..

HOW MUCH IS
Workers' Compensation Insurance?

Workers' Compensation Insurance

Workers' Compensation Insurance (also called Workers' Comp or Workman's Comp) can cover medical expenses and lawsuits when bartenders, barbacks, bouncers, kitchen staff, and other employees are injured on the job.

Working at a bar is demanding. Employees are on their feet and working at a fast pace around all kinds of hazards – angry customers, broken glass, and slick floors, to name a few. State laws usually require bars with more than a couple employees to have Workers' Comp.

To cover their employees, many bars pay between $749 and $5,916 in annual premiums. In some cases, though, because of the dangerous nature of the work bartenders do, premiums can be much higher.

Median policy premium:

$749 – $5,916

Median policy limit:

$1 million

Median policy deductible:

None

To learn more about regulations in your area, check out our state-by-state guide to Workers' Comp laws.

To see how the cost of Workers' Compensation Insurance for bars and taverns compares with other industries, visit Insureon's Workers' Compensation Insurance Cost Analysis New browser window icon..

Free Quotes on Banquet Hall Insurance

Free Quotes on Banquet Hall Insurance

These sample quotes are just cost estimate for what a typical small bar or tavern pays for insurance. If you'd like a quote tailored specifically to your business, state requirements, and other factors that affect that cost of bar insurance, submit an online insurance application. An agent specializing in bar insurance will respond with multiple quotes for you to choose from.

Grab-n-Go Information

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