A renovation can reinvigorate a bar’s identity. Fresh finishes, new features, and modern layouts add to the aesthetic appeal and signal growth. Whether it’s adding a stage for live music or transforming a side alley into a lively beer garden, upgrades are often a bold move toward boosting revenue. But while owners may be focused on design boards and construction crews, insurance agents have a different blueprint in mind — one that safeguards every square foot. RMS Hospitality Group helps agents align bar and tavern insurance coverage with evolving operational and liability realities.
During renovations, a bar's risk profile evolves in ways that standard insurance policies might not anticipate. For insurance agents, accounting for the following risks is essential for helping clients maintain comprehensive coverage throughout the transition.
Temporary changes — like blocked exits, narrowed walkways, exposed wiring, or partially finished flooring — can increase the chance of customer injuries. These hazards may fall outside the bounds of an existing liability policy if the carrier isn’t notified in advance. If a guest slips or trips in a construction area and the renovation was never disclosed, the claim may be denied or underinsured.
Updates like rooftop patios, raised stages, expanded kitchens, or open floorplans often seem like smart upgrades. But each one introduces new risks. For example, live entertainment attracts larger crowds and raises the potential for altercations or fall injuries. A new kitchen adds foodborne illness liability. Even cosmetic improvements, like new lighting or high-top seating, can affect crowd flow and increase the risk of incidents. If the policy doesn’t reflect these upgrades, liability coverage may fall short at the worst time.
Renovation brings in new players — contractors, electricians, equipment vendors — and with them, overlapping lines of responsibility. If a subcontractor leaves debris in a public area and a patron is injured, who’s liable? If construction causes damage to neighboring property, does the bar’s policy respond?
Insurance agents should ensure bar owners require proper certificates of insurance from all third parties and that their own coverage includes language accounting for shared liability during renovations.
Renovations are often a springboard for broader operational changes. New self-pour tap systems, entertainment zones, or expanded menus all attract new clientele but also introduce novel exposures. These upgrades may increase time spent on-premises, patron interaction with equipment, and food or alcohol consumption — each of which raises potential liability. Policies must reflect these new features and their associated risks, especially when alcohol is involved.
It’s not just the physical space that changes. Renovations often signal a new business phase — longer hours, more staff, increased capacity, or a full rebrand. These shifts may be signs of success, but they also invalidate old underwriting assumptions. A policy written when the bar closed at midnight and served 60 patrons doesn’t necessarily cover a bustling venue with a 2 a.m. last call and a full events calendar. Without proper updates, the bar’s insurance could be built for a past version of the business.
Insurance agents should walk through a bar’s renovations the same way they’d walk through the venue itself: room by room, risk by risk. Here’s what deserves a closer look.
General liability (GL): GL should cover new layout risks like changes in flooring, foot traffic flow, or added entertainment areas.
Liquor liability: Expanded menus or multiple bar service points can increase exposure, requiring policy adjustments.
Assault and battery: More events and larger crowds call for re-evaluating protections against altercations.
Excess liability: This coverage provides an additional layer of protection above the limits of existing policies, which is especially important when renovations bring in more patrons, larger events, or expanded operations.
Workers’ compensation: Mandatory in most states, workers’ comp is essential if construction or reopening involves additional staff, training, or roles — protecting against employee injury claims during and after renovations.
These and other essentials are all part of RMS’s tailored insurance approach.
As PourMyBeer and even shows like “Bar Rescue” highlight, failure often stems from operational blind spots, not lack of effort. Owners may focus on ambiance but ignore evolving safety protocols or outdated insurance. Successful renovations require more than vision — they demand recalibrated policies that reflect the business’s new direction.
Bars that renovate may see an early wave of success. But that honeymoon period can mask gaps in coverage. Owners may assume their current policies are still valid, not realizing their new look, layout, and service model may require new protections. Regular insurance reviews ensure that the business’s transformation is supported by coverage that’s equally evolved.
Renovating historic bars adds complexity. From custom tilework to structural code variances, rebuilding costs can far exceed standard replacement value. Americans With Disabilities Act updates and other compliance issues may also come into play. Insurance policies must reflect these nuances, not just square footage.
Renovation is a business milestone, but it also involves structural, operational, and financial shifts. As a trusted partner, you can help bar owners secure insurance coverage that grows alongside their ambition. Contact us to see that your clients’ next chapter starts with the protection they need.
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.
At RMS and associated firms, business continues as usual. Our staff is remote-capable and available to handle all partners, brokers, and insureds at the present time.
