Whether you’re thinking about opening your first pub or you’ve owned bars for years, one of the most important things you’ll need to do is secure a quality pub insurance policy for your business. The right pub and bar insurance policy will provide coverage for all areas of your business, limiting your exposure and protecting your investment. Of course, pub insurance comes at a cost, and one of the most common questions we get from bar owners is:
“How Much is Pub Insurance?”
The fact is there’s not a simple, one-size-fits-all answer to this question. Make no mistake, it’s an important question that directly impacts your bottom line, and you do obviously want to make certain you’re getting a fair rate. However, there are a number of factors that can influence your total bar insurance premium.
Some of the factors that can affect the cost of your bar insurance policy are as follows:
- The location of your pub— Your pub’s actual physical location includes many different characteristics that can affect the total cost of insuring it. For example, do you own the building where your pub is located? What part of town is the pub located in? What kind of safety features does the building offer? Do you share the building with other tenants? Are there fire hydrants or fire stations nearby? These are just a few of the characteristics of your bar’s physical location that can have an impact on your total premiums.
- Hours of operation— You’ve probably heard the old saying, “nothing good happens after midnight.” Well, many insurance companies subscribe to this theory. Simply put, the later your establishment is open into the night and early morning hours, the higher your premiums will likely be. Of course, most pubs are open until 2 am, so this can cause their insurance costs to climb.
- Entertainment and events— If your pub hosts any type of entertainment or special events, you can bet they will affect your insurance rates. Live entertainment brings in extra customers, extra sales, and extra exposure for your bar. In fact, there are certain kinds of entertainment that some insurance companies will simply refuse to cover. So, it’s important to know what kind of live entertainment your pub will offer so you can get the right coverage for your unique needs.
- Number of employees— For workers compensation insurance, the number of employees and total wages will directly influence your pub insurance premiums. Obviously, a larger operation with a number of employees will carry more insurance costs than a smaller pub. So, you need to keep tabs on the total number of employees you have and their wages to get an accurate answer to the question of how much your pub insurance will cost.
- Amount of time in business— Fact – most bars (and restaurants, too) fail within their first year of business. It’s a brutal industry to break into. Insurance companies consider this when insuring pubs. They want to make sure your business is going to remain open over the long haul. So, if your pub is just opening up, you might have to pay a little more for insurance than other more established bars in your area.
Of course, these are just a handful of the many factors that can affect the total cost of your pub insurance premiums. Every bar is unique, and it’s those unique, one-of-a-kind characteristics of your business that will ultimately determine just how much it costs to insure your pub.
If you have a question about pub insurance in Texas, talk to the experienced team at Food & Beverage Insurance Agency. We offer pub insurance in Dallas, Houston, Austin, San Antonio, and across the state. Visit www.MyBarandRestaurant.com to learn more.