What Business Insurance Do I Need for a Bar in Arizona? The Complete Guide for Picking the Right Coverage

Table of Contents

• Getting Started
• Property Insurance
• How Much Coverage Do I Need to Get?
• The Two Types of Liability Insurance Needed for a Bar
  • General Liability Insurance
  • Liquor Liability Insurance 
• Assault and Battery Coverage 
• Other Types of Insurance Policies 
• Wrap Up
• Why Work with Arizona Bar and Restaurant Insurance

Getting Started

Have you recently bought a bar to operate in Arizona and are wondering, “What business insurance do I need for a bar?” Then you’ve come to the right place.

In this guide, you will learn all about property Insurance, liability insurance, and other types of coverage. 

What kind of insurance do you need as an operating bar? Keep reading to find out! 

Property Insurance

When running a bar, you will definitely need business property insurance. This type of insurance policy will cover the physical building you own and the items inside it. You might also want to get personal property coverage.

Commercial property insurance will cover any damages to your bar or restaurant in Arizona. Along with the main building, this type of insurance may cover personal property that you operate for your business. 

Some insurance policies include packages of property insurance geared toward businesses that sell alcohol. Property insurance can be based on the entire cash value of your business in Arizona.

You can also choose replacement cost coverage, which is more pricey but provides enough funding to recover after a major loss. Furthermore, if you have purchased the entire building where your bar is, you might want to get building ordinance coverage.

How Much Coverage Do I Need to Get?

Along with figuring out and wondering, “What business insurance do I need for a bar in Arizona?” it is vital to determine how much coverage you need to get for a bar in this state.

You will want to first find out how much it will cost to replace all of your property and belongings. In case of a fire or a natural disaster, how much would it cost to replace all of your refrigerators, tables, stools, merchandise, and the building itself?

If your bar has very interesting and irreplaceable decorations, you might need to get fine arts coverage. This can help you avoid disputing with insurance agents over the value of your unique artwork or collectibles. 

Are you still asking, “What business insurance do I need for a bar?” Well, there’s also business income coverage. This type of insurance can cover the money loss you might face if your bar needs to shut down for weeks or months for repairs. 

These are all the types of coverage you should consider purchasing.

The Two Types of Liability Insurance Needed for a Bar

Do we need insurance for bar? Yes! Along with property insurance and business income coverage, you also need liability insurance. The two types of liability insurance you will need include:

• General liability insurance
• Liquor liability insurance

General Liability Insurance

If someone, such as a customer, sustains an injury or property damages while visiting your bar, you may be liable. However, a general liability insurance policy will protect you. Furthermore, this type of insurance covers any products you sell that may lead to bodily injury or property damage.

Bars that have mechanical bulls or pool tables may need to pay more in general liability insurance, but they’ll be covered if someone sustains an injury and makes a claim.

Liquor Liability Insurance

Bars will definitely need the right coverage when they serve liquor. The cost of liquor liability insurance will depend on the percentage of how many alcohol sales you make out of total sales as well as Arizona laws regarding this type of policy.

To avoid any disputes regarding whether a general liability or a liquor liability policy covers something, it is best to purchase both policies from the same insurer. 

Along with having liquor liability insurance, your business will need to follow best practices in serving alcoholic drinks. 

This entails conducting background checks on staff and security guards, paying attention to how much alcohol is being served per customer, and keeping track of all certifications and licenses necessary for serving liquor.

There are also specific Arizona liquor laws that your bar will need to follow. For example, you may need to submit an audit with all your records to keep your liquor license. You’ll also need to have the right number of cooks, waiters, and staff as well as kitchen equipment at an acceptable quality. 

Assault and Battery Coverage

When considering, “What Business Insurance Do I Need for a Bar in Arizona?” do not overlook this coverage. You will find that there are common exclusions in typical insurance policies, which often include assault and battery coverage. Some other exclusions are:

• Weapons-related coverage
• Employment practices liability (EPLI)
• Cyber liability
• Sexual harassment and discrimination coverage

As such, bar owners may need to make weapons exclusions rules to avoid a potential shooting or other bodily injuries among their customer base. Your liability insurance policy will often include an “expected or intended injury” exclusion, which means assault and battery caused by the bar owner or staff due to an unruly customer is likely not covered.

If you’re opening a bar, you’ll want to find the right liquor liability or general liability insurance policy so that it also includes assault and battery coverage.

Other Types of Insurance Policies

Some other essential types of insurance to purchase are workers’ compensation insurance and commercial auto policies. Whenever you hire employees to bartend or serve food and alcohol, you need to include workers’ compensation insurance to protect your business.

If you are using vehicles in bringing merchandise to your bar or you are delivering food/alcohol by automobile, then you’ll benefit from having commercial auto insurance. This can even help cover employees who own the vehicle but drive it for your business (such as food delivery).

Wrap Up

If you’re opening a bar in Arizona, you will need to get a variety of different insurance policies. These range from property insurance and replacement cost coverage to general liability insurance, liquor liability insurance, assault and battery coverage, and workers’ compensation insurance.

If you operate an automobile for your business, you might also need commercial auto insurance. Once you have all the insurance policies in place, you can start running your bar and enjoy the light, fun atmosphere every night.

Why Work with Arizona Bar and Restaurant Insurance

If you are asking the question, “What business insurance do I need for a bar in Arizona?” than Arizona Bar and Restaurant insurance is the right fit.

Our team will personally review your policies and look to protect your business, while also saving you money with the best A rated insurance carriers in the industry. Since David and his team specialize in the business, they have access to many carriers with whom your standard brokers do not have appointments.

The personal touch, David and his team have an outstanding reputation for being personable and easy to work with.

Contact us today and let us give you the personal touch you deserve and a free quote(s) with no obligation for your bar, pub, brewery, fast food restaurant, fine dining venue, coffeehouse or catering business.