6 Scary Things that Make Bar Costs Go Up

Do you own a bar? If you do, you need to know why your costs may go up. Insurance is a big cost for bars. It can cost a lot of money. This is why you need to know what makes it cost more.

What This is About

This will help you see what can make your bar insurance cost more money. You will learn:

• What makes costs go up
• How to make costs go down
• Real stories about bar costs
• Tips to save money

1. Risks from Serving Drinks

Liquor can cause big problems for bars. When you serve drinks, you need to know the risks.

Big Risks with Drinks

• People who drink too much can hurt others
• You can get in big trouble if you serve too much
• You may have to pay a lot of money if someone gets hurt

The Hard Facts

I want to tell you how bad it can get. Look at this:

• The normal cost for a liquor claim is $500,000
• About 38 out of 100 bars will face a lawsuit about alcohol
• One bar in Texas had to pay $1,200,000 after a drunk person drove and hurt someone

How to Fix It

You can make this better by:

1. Train your staff well
2. Check IDs every time
3. Know when to stop serving drinks
4. Use rubber bar mats to stop spills that can cause falls

2. Where Your Bar Is

Location matters a lot for insurance costs. Some spots cost more than others.

High Cost Spots

• City bars pay 30% to 50% more than town bars
• Areas with more crime cost more
• Places that flood can cost more
• Busy streets can make costs go up

Real Story

A bar in New York City saw their costs go up three times after they had break-ins. The area had a lot of crime.

How to Fix It

To help with this:

1. Put in good locks
2. Get alarm systems
3. Use good lights outside
4. Put custom bar runners at doors to stop slips when it rains

3. Poor Safety Rules

Safety is a big deal for bars. Not being safe can cost you a lot.

What Can Go Wrong

• Wet floors cause falls
• Bad chairs can break
• Dark spots can hide dangers
• Broken glass can cut people

By The Numbers

• Each slip and fall costs about $20,000
• A bar in Miami had to pay $75,000 for not fixing a wet floor
• Most falls happen near the bar top or in the bathroom

How to Make It Better

You need to:

1. Check your bar each day for risks
2. Fix things that break right away
3. Train staff to clean spills fast
4. Use PVC bar mats in wet areas to stop falls

4. Too Many Claims

Claims are when you ask for insurance money. Too many claims can hurt you.

The Problem with Claims

• Each time you make a claim, it gets noted
• Too many claims make you look risky
• If you look risky, you pay more

The Facts

• Two or more claims in three years can make costs go up by 40%
• A bar in Chicago could not get insurance after three theft claims
• Small claims can add up to big problems

What You Can Do

Try these tips:

1. Fix small problems with your own money
2. Only claim for big issues
3. Put in safety steps to stop problems
4. Use custom coasters to stop water rings and protect your bar top

5. Staff Not Trained Well

Your staff needs to know what to do. Poor training leads to problems.

Staff Problems

• Not knowing when to stop serving
• Not handling fights well
• Not knowing what to do in an emergency
• Not checking IDs right

Numbers to Know

• Bars with good training save 15% to 25% on costs
• A bar in Ohio had 60% less problems after training
• Staff who know what to do help stop small problems from getting big

Fix The Problem

You should:

1. Train all staff on drink laws
2. Teach them how to spot fake IDs
3. Show them what to do in a fire
4. Make sure they know first aid

6. Old Equipment and Property

Old things in your bar can cause big troubles. They can break, leak, or start fires.

The Risks

• Old wires can start fires
• Old coolers can leak
• Bad pipes can cause floods
• Old chairs can break

Real Problems

• Electrical fires make up 12% of bar property claims
• Each fire costs about $50,000 to fix
• A bar in California had a $200,000 fire from old wires

Make It Better

You need to:

1. Check all equipment often
2. Fix old wires
3. Replace things before they break
4. Keep all areas clean and dry
5. Use acrylic ice buckets instead of glass ones that can break

Three More Things You Might Not Know About

There are other things that can make your costs go up:

1. Music Problems

If you play music but don’t pay for it, you can get in trouble. You need to pay for music rights.

2. Computer Risks

If you save customer card data and someone steals it, you can be in big trouble. This is called cyber liability.

3. Outside Seating Risks

Tables and chairs outside can cause more falls. Make sure they are safe too.

Tips to Lower Your Bar Insurance Costs

You can save money on bar insurance. Here’s how:

Bundle Your Plans

Pro Tip: Put all your insurance plans together and save 15-20%!

More Ways to Save

1. Look at new quotes each year
2. Put in cameras
3. Get alarms
4. Ask about paying more up front to lower monthly costs
5. Show that you train your staff well

Questions People Ask

What costs the most in bar insurance? The most expensive part is usually liquor liability. This is the risk from serving alcohol.

Can I get insurance if I had problems before? Yes, but it may cost more. Show that you fixed the problems.

Does having a security guard help? Yes! Guards can lower your costs by stopping fights and checking IDs.

What to Do Now

Now you know the six big things that make bar insurance cost more:

1. Risks from serving drinks
2. Where your bar is
3. Poor safety rules
4. Too many claims
5. Staff not trained well
6. Old equipment and property

Don’t let these things hurt your business. Take steps now to fix them.

Want to know more? Get our free bar insurance checklist by emailing us.

Safety Products That Help

Good bar supplies can help keep your bar safe. Try these:

• Custom logo bar mats stop spills and falls
• Strong wine buckets keep floors dry
• Silicone bar mats last longer and stay cleaner than cloth

Final Words

Running a bar should be fun. Don’t let high insurance costs ruin it. Use the tips in this guide to keep your costs down. Fix problems before they start. Train your staff well. Keep your bar safe.

With the right steps, you can run a safe, fun bar that doesn’t cost too much to insure. Your customers will be happy, and so will your wallet!