Nightclubs, comedy clubs, lounges and similar venues face a host of potential risks that they should insure against. Insurers offer a variety of coverages for these risks. If you run a nightclub or similar business in Massachusetts, here are several liability coverages you may want to consider including in your club’s nightclub insurance policy.
When Getting Nightclub Insurance, What Liability Coverages Should My Massachusetts Club Look For?
General Liability Coverage
General liability coverage is used by businesses across many industries to protect themselves from a variety of common risks. Broadly speaking, this coverage helps protect a business in certain situations where the business is responsible for property damage or injury that a third party sustains. For example, general liability coverage may offer protection in the following situations:
A customer trips over something on the floor and is injured
A competitor sues for slander or libel (an injury to their reputation)
A kitchen fire spreads from a business’ leased space to other parts of a building
General liability coverage is intentionally general in its protections, which is why it’s used by so many different businesses. Simply by conducting business, your club is almost certainly exposed to some of the risks that general liability coverage is designed to safeguard businesses from.
Liquor Liability Coverage
Liquor liability coverage is purchased by many businesses that serve or sell alcohol. Bars, restaurants, wineries, nightclubs and lots of other businesses that offer adult beverages get this protection.
Liquor liability coverage normally provides protection for alcohol-induced incidents. These may include fights between intoxicated patrons, DWI or DUI accidents patrons are involved in on the way home or a number of other alcohol-related incidents. If a business is held financially responsible for damage or injuries caused by an intoxicated patron, liquor liability coverage may help pay any associated legal fees or settlements.
If your club serves alcohol, it’ll likely need a liquor license from Massachusetts. To get one, you’ll have to furnish proof that your club has liquor liability coverage that at least meets the state’s minimum requirements. Thankfully, most nightclub liability insurance policies include enough liquor liability coverage to meet the state’s requirements.
Product Liability Coverage
Product liability coverage is used by many companies that sell products to customers. These include manufacturers and retailers, but it also includes restaurants, bakeries, taverns, and clubs that offer drinks or food. For both drinks and food are considered products.
When a business sells a product that causes personal injury, it might be held liable for the harm the product caused. Product liability coverage is designed to help compensate affected customers and/or defend companies against covered product-related claims.
For clubs and other establishments that serve drinks and food, this isn’t a coverage that should be overlooked. One of the most common product liability issues in the foodservice industry is food poisoning. Because food poisoning will often affect multiple customers, the outfall from a single mistake can be significant. Since drinks and food are considered products, product liability coverage might cover such incidents if the coverage is included among a policy’s nightclub liability insurance protections.
Assault and Battery Liability Coverage
Assault and battery liability coverage usually helps protect businesses in situations where an owner or employee is involved in an assault or battery incident while they’re working. This isn’t a major risk for many businesses. For clubs, though, this is often a significant potential risk that should likely be included in a nightclub insurance policy.
Should a bouncer, bartender or other employee of your club ever need to physically remove a patron from your establishment, you’ll want to have your club protected by assault and battery liability coverage. Physical altercations sometimes lead to injuries, and your club may be asked to compensate any customers who are injured by a bouncer or bartender. This coverage might help defend your club in such situations and pay any required settlements.
Check Your Massachusetts Club’s Nightclub Insurance
To make sure your Massachusetts club’s nightclub insurance policy includes all of the liability coverages your club needs, contact an independent insurance agent who specializes in this type of insurance. An independent agent can help you assess your club’s risk exposure, determine what coverages the club needs and find a policy with those nightclub liability insurance coverages.