Restaurant Tavern & Bar Insurance

Restaurants, bars, taverns, and nightclubs have more to worry about than daily specials and what’s on tap, such as accidents in the kitchen and slips and falls from customers. Over-served patrons who get behind the wheel present a liquor liability. Fights among patrons or those with security personnel account for numerous assault and battery claims. Throw in a misguided dart, an unsuccessful mechanical bull ride or a fall on the dance floor and the recipe for risk increases. Bars, Taverns and nightclubs are unique and shouldn’t be insured like other businesses. In order to meet these specific needs, we have created a special restaurant package that broadens and increases coverage where restaurants, Bar Taverns need it most. Our goal is to provide more insurance for the dollar than any of our competitors.

Our Preferred Bar Tavern & Nightclub Insurance package program provides many forms of coverage that are not found in standard coverage forms. Additionally, the limits for many standard coverage parts have been increased substantially.

Restaurant Tavern & Bar Coverage for Your Business

Building, Business, Personal Property & Inventory
Business Interruption – Actual loss sustained 12 months
Food Spoilage or Contamination
Outdoor Signs – attached and unattached: $7,500
Credit Card – charges uncollectible as a result of an insured loss: $2,500
Water Backup and Overflow – from sewers, drains or sumps: $5,000
Business Income is extended to include Power Failure. A 24-hour deductible applies.
Mechanical breakdown coverage
Fine Arts
Sign Coverage
Employee dishonesty and crime coverage
Coverage for computer equipment media, data programs and communications equipment

Is Tavern & Bar Insurance Expensive?

It Depends. Every business has unique risks based on the size of their operation, the number of employees and the types of products served. And because no two taverns are alike, every insurance policy is different. On average, these policies run about $3,000 to $5,000 a year, but if your business is smaller, you can expect to pay less. Some factors that will influence your insurance rates include:

The type and location of the bar you own
The number of years you have been in business and your loss experience.
Your annual sales and revenue
Whether or not your establishment offers live entertainment

U.S. Restaurant Tavern Bar Industry Statistics

In 2026, there are over 1,000, restaurant and food service outlets in the United States
70% of all U.S. restaurants are independent, single-location businesses.
There are 70,015 bars and nightclubs as of 2026, a 0.6% increase from the previous year.
Taverns, Bars & Nightclubs is valued at $39 billons dollars in 2026

Insurance Coverage for Your Liability Risks

General liability insurance: This provides coverage for bodily injuries and property damages if a customer is injured in your bar or its outside property, like the parking lot. You may need to purchase a separate rider if your bar offers hazardous entertainment features such as mechanical bulls or a live shark petting zoo. Oftentimes, bar insurance policies exclude general liability coverage if the customer involved was injured due to intoxication after being served in your establishment. For that, you will need liquor liability insurance.
Liquor liability insurance: This is a specific bar liability insurance that covers property damage or physical injuries caused by patrons who have been overserved at your place. And with the risk of overserving alcohol on your property, comes the added risk of violence and assault. Liquor liability insurance policies typically exclude coverage for injuries due to fights and assault, so you will want additional assault and battery liability insurance, too.
Assault and battery liability insurance: If a fight breaks out in your establishment, you may be held liable if it can be shown that you failed to provide a safe environment for your customers. Hiring security guards and bouncers can prevent many instances of assault and battery claims against you.
Product liability insurance: Many bars also serve food, even if it’s just popcorn and bar nuts. If the food or alcohol you are providing to your customers is tainted in any way and causes your customers to get sick, you may be held liable for resulting medical expenses and related fees. This insurance will provide the coverage you need for these types of claims.
Garage-keepers liability insurance: This one’s only really necessary if your bar or nightclub provides a valet service. It provides coverage for damages to your patrons’ cars while they are in your care.

What is Dram Shop Liquor Liability Insurance?

At the highest level, this insurance protects a company that manufactures, sells or serves alcohol, against claims that occur when a patron drinks too much and injures himself or someone else. Liquor liability insurance, also known as dram shop insurance, is liability coverage for businesses that serve, sell, distribute, manufacture or supply alcoholic beverages.

Unfortunately, this means that if you sell alcohol or liquor on site, then you could be held liable for your patron’s actions and wrongdoings. The issue is, that alcohol can impair the judgement of the consumer and if your business is serving it, it’s important that you are prepared for what may happen next. Restaurants, clubs, taverns and bars that serve alcohol in any form, including wine, beer and spirits could end up footing the bill for damages done by an inebriated patron.

While it may seem unfair, your establishment could be sued if someone drinks at your location and then goes on to cause an accident, damage property or cause injury to themselves or others. Liquor Liability Insurance protects your business in the event of an incident; your standard insurance policy likely will not cover an alcohol-related incident