Liability coverage helps protect nightclubs from covered claims that accuse a nightclub of being responsible for physical harm or property damage. If a lawsuit is successful, a policy may cover both the legal costs and settlement associated with the claim. Even if a lawsuit is unsuccessful, a policy might cover legal defense costs.
The liability portion of a nightclub policy often has several important coverages. These might include:
- General Liability Coverage, which typically provides broad coverage that’s appropriate for many kinds of businesses
- Liquor Liability Coverage, which can help insure a nightclub against covered claims where it’s held responsible for the actions of an intoxicated patron
- Product Liability Coverage, which might cover illnesses caused by food or drinks that are served (i.e. food-borne illnesses)
The property coverage portion of a nightclub policy defines the protections that the policy provides for a nightclub’s physical property. This section might contain a combination of the following coverages:
- Building Coverage, which may protect a nightclub’s building if it owns the building
- Contents Coverage, which might cover DJ equipment, a dance floor, lighting fixtures, bar equipment, seating, kitchen equipment, artwork and other items
- Equipment Breakdown Coverage, which could help with repair costs if a covered incident causes equipment to malfunction
- Food Contamination Coverage, which may provide compensation for food and drink that spoils following a covered incident
What Nightclubs in Massachusetts Should Have a Nightclub Policy?
Most nightclubs in Massachusetts ought to have a nightclub policy. This is typically the best way to insure an establishment that serves drinks and food, plays music, and promotes partying.
How Can Nightclubs Get a Nightclub Policy?
Nightclubs can learn more about nightclub insurance and compare available policies by contacting an independent insurance agent. There are agents experienced in this field who are qualified to help nightclubs get quotes and select a policy. With the aid of an independent agent, it takes just a short time to get several quotes and find a policy that will meet a club's specific needs.