What Insurance Do Alberta Bars and Pubs Need?
Running a bar or a pub comes with risks, especially when you are serving alcohol. You need to protect your Alberta licensed establishment from liquor liability claims that allege third-party bodily injury or property damage as part of your customized bar insurance.
Liquor liability insurance for your Alberta bar, pub, or lounge is essential insurance coverage that you need when you are serving customers alcohol.
What is Alberta bar and pub insurance?
Alberta bar and pub insurance is a package insurance coverages that protect your licensed establishment. Liquor liability insurance is an essential part of your Alberta bar insurance. Without it, you could potentially face lawsuits or third-party liability claims should one of your customers get injured, injure someone else, or damage property after getting intoxicated in your establishment.
How much does Alberta bar and pub insurance cost?
There isn’t a one-size-fits-all price for bar and pub insurance.
Factors that will determine the cost of your bar insurance are:
- Years of experience
- Location of your bar, pub, tavern, or lounge
- What types of alcoholic drinks are served
- Percentage of annual revenue from selling alcohol
- Equipment on premises
- Number of employees
- Any past insurance claims
An insurance package for Alberta bars and pubs usually includes these insurance coverages:
Liquor liability insurance
Liquor liability coverage helps cover the costs associated with claims against your bar or pub that allege third-party bodily injury or property damage due to an intoxicated customer.
As the bar owner, you could be held responsible for losses, damages, or other expenses arising from third-party bodily injuries, deaths, or damage to another person’s property resulting from an accident or incident if the alcohol you served to one of your customers is considered to be a contributing factor.
Liquor liability coverage typically includes financial support to cover court awards made against you and to cover legal fees caused by an intoxicated person to whom you served alcohol. It covers your legal expenses up to your policy’s limit.
Your employees must be licensed to serve alcohol by provincial liquor service and sales programs such as Alberta’s ProServe. This includes anyone who serves, handles, or sells alcohol and it also includes your security staff.
Commercial general liability (CGL) insurance: This type of insurance helps protect your bar or pub from a loss if you’re found legally liable for bodily injuries or property damage to a customer/supplier.
CGL can help pay legal and medical costs if a customer is injured at your restaurant; for example, they slip on wet floor or on an icy patch on your bar’s sidewalk.
Without commercial liability insurance, you would be responsible for paying any liability costs on your own.
Your CGL coverage also can help protect you from libel, slander, copyright infringement, and false advertising allegations.
How much CGL insurance do I need?
It’s not uncommon that your Alberta bar would carry a minimum of $2 million in CGL coverage and more depending on the size of your bar and its alcohol sales.
Commercial building and contents insurance
Commercial property insurance helps protect your Alberta bar from unexpected events like fire, theft, or vandalism. It's not just the physical structure that's protected, but everything inside and out that keeps your restaurant running smoothly.
Cyber insurance: If you process debit and credit card transactions, you need cyber insurance. Your system could be vulnerable to cyberthieves.
Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your system if it’s hacked.
Equipment breakdown insurance: Your bar or pub likely has expensive electrical and mechanical equipment to keep your products either frozen or refrigerated.
This type of insurance provides coverage for property damage from the sudden and accidental breakdown of insured equipment not automatically covered by a standard commercial property policy.
Product liability insurance: If you serve food at your Alberta pub and a customer gets sick after eating your food, product liability insurance can help cover the cost of the customer’s medical expenses and your legal and court-related costs to defend yourself.
Commercial auto insurance: If you have a business car, van, or truck that you use for your Alberta bar or pub, it won’t be covered by your personal car insurance policy. You will need commercial coverage as part of your insurance package.
Business interruption insurance
This type of insurance supports you when your bar can’t operate due to a covered loss, such as a fire.
There are a number of losses that can force your business to shut down. Some examples are:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with these expenses:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Do you know about Western’s Financial Group’s Hospitality Insurance Program (HIP)? The Hospitality Insurance Program partners with Canadian hospitality associations to provide commercial insurance and Employee benefits tailored to the unique needs of hotels, motels, bars, and liquor stores.
If you own a bar or pub in Alberta, your Western Financial Group business insurance expert will give you top commercial insurance advice for your establishment and at the right value for you.
