Key Insurance Coverages Every Nightclub Should Possess

Nightclubs offer dynamic, fun environments. People go clubbing for excitement and new experiences. Likewise, operating a nightclub can also be exhilarating for owners and managers.

Attention to details is vital for nightclub success. Owners must choose the right lighting and music, but they also have to carry the right nightclub insurance. Your clients who own nightclubs may have important questions for you. Read on to learn how to answer them.

What Insurance Do I Need for a Nightclub?

Nightclubs face unique challenges from other types of businesses in the hospitality industry. Whether they are large facilities that feature live performances or private clubs, all nightclubs present risks, both financial and physical. An example of physical threats is the danger of fires.

Nightclub owners can mitigate some of the financial risks with the right type of nightclub insurance. These categories are:

• Medical - Nightclubs employing 50 or more full-time employees must provide health insurance for staff.
• Unemployment - State law requires clubs to provide this coverage. Often, it is included as part of state taxes when owners register clubs with state workforce agencies.
• Disability - In many states this is an optional policy for clubs, but it is required in New York, New Jersey, Rhode Island, Hawaii, California, and Puerto Rico.

Another major component of coverage is nightclub insurance, a policy containing multiple types of liability coverage that protects club owners from lawsuits.

What Are the 7 Types of Insurance Coverages To Have?

Nightclubs present multiple risks, and owners must plan for the unexpected. Here are the most important types of insurance club owners should have:

• Liquor liability - This insurance covers bodily injury and property damage intoxicated persons cause. It does not, however, cover injuries received in fights.
• Assault and battery - This liability policy helps protect financial assets should claims be made that owners did not provide a safe public environment.
• Concert liability - Artists performing live at clubs may require owners to carry this coverage to protect their instruments and themselves and their entourage from damage or injury.
• Event liability - Club owners should require groups renting the club for a special event to carry this one-time policy that covers damages to the night club during the event.
• Bouncer liability - Club bouncers may cause injuries when restraining or ejecting patrons from clubs. This policy protects financial assets against lawsuits claiming injuries as well as provides compensation to bouncers injured on the job.
• Garage keeper liability - Clubs offering valet parking need this type of policy that protects assets if a patron's vehicle is damaged while in the club's care.
• Workers compensation - This policy provides compensation for medical care if a club employee is injured while on the job.

Nightclub owners must take care that, when focusing on providing a stimulating venue for patrons, they also prioritize creating a safe environment for both the public and club staff. Insurance designed for nightclubs includes the specialized types of coverage needed for these unique venues.

About RMS Hospitality Group

At RMS Hospitality Group, our expertly crafted policies are written specifically for the hospitality industry. We offer custom tailored solutions to meet any venue's specific needs. For more information, contact our knowledgeable experts today at (888) 359-8390.