The Benefits Your Clients Receive from Nightclub Insurance

Your clients who own or operate hospitality ventures, such as a live music venue or nightclub, need adequate amounts of nightclub insurance, given the potential for liquor and assault and battery claims, which are just the tip of the iceberg.

For example, a customer eats a delicious meal at your client’s place of business; only to hours later suffer a serious reaction to something that they consumed earlier. This is the sort of ordeal that, without proper coverage for products and completed operations coverage, could turn into a business owner’s nightmare.

A claim for food poisoning can often be quite costly, or certainly any number of other completed operations issues could occur. Your client could end up facing serious consequences if they experience any type of coverage gap due to the fact that their hospitality program insurance hasn’t been designed to deal with all of the issues at hand.

Assault and battery & liquor liability concerns top the list

But let’s face it – bars and nightclubs identify assault and battery along with liquor as the two biggest liability concerns this industry regularly deals with. Plus, with the potential for assault and battery charges being so high, these establishments need to beware of general liability policies that may exclude assault and battery, or at least reduces the limits available to a small fraction of the typical $1 million policy. There are insurers issuing a $25,000-to-$300,000 sublimit for this coverage.

They should maximize their coverage for liquor liability that will protect these establishments from claims that they served liquor to a visibly intoxicated person, or to a minor who subsequently caused death or injury to third parties. A claim and subsequent settlement of this kind can easily wind up being a multi-million dollar judgment, and an improperly insured business would be ruined.

In addition to having adequate liquor and general liability coverage and limits, buyers and their brokers should consider an excess or umbrella policy to further enhance coverage. This way, if a judgment does end up exceeding their liability insurance limits, they’ll have the added protection that they need and deserve. Your best move is to discuss all of the nightclub insurance needs of your different clients and come up with the right solution for each individual business model.

Assault and Battery Charges and Nightclub Insurance

As the owner of a nightclub you have a heightened level of risk associated with establishments where alcohol is served, and you should be concerned about the conduct of your patrons, many of whom may end up consuming too much, making them capable of heinous acts while they are under the influence.

Assault and battery charges are two very real dangers to your business and you’ll need to be sure your nightclub insurance coverage is adequate for these types of occurrences. Here are some examples of situations that could quite easily escalate to a point where a charge of assault and/or battery could occur:

  1. A minor using a fake I.D. card enters a club and has a few drinks. The minor ends up getting into an argument with another patron. The minor then hits the other patron near the eye with a beer bottle causing significant injuries and requiring eye surgery. The victim is likely going to file a claim against this establishment.
  2. A man consumes several beers while watching a televised hockey game at a neighborhood bar and ends up fighting with another patron. The bar’s bouncer, attempting to break up the fight, grabs one of the men and throws him to the floor. The man requires surgery for multiple injuries sustained and files suit against the bar, claiming his injuries stemmed from the over service of alcohol.
  3. Three friends enter a nightclub, and quickly become involved in an altercation with another patron who was intoxicated. During the fight, the other patron ends up stabbing one of the three friends, and that person ends up having to have emergency surgery at a nearby hospital.
  4. Two patrons, both intoxicated, accidentally bump into each other at the service bar of a hotel. During an ensuing brawl, the larger of the two punches the other in the mouth, resulting in the need for extensive dental work.

A policy limit of $100,000 could quite easily be exhausted from medical and defense costs in any one of these scenarios. Nightclub insurance should be purchased in adequate amounts in order to defend against a major lawsuit due to inebriated customers who may cause physical harm to others.