Owning and operating a bar in Texas can be a profitable business venture, mainly if you work hard to build a loyal customer base. In addition to standard business costs, specific costs are associated with having a bar.
One of the more significant financial commitments can be your insurance coverage. In Texas, a solid bar liability insurance policy that covers your establishment is essential and doesn’t have to break your budget.
Bars have risks and potential liabilities that don’t affect other businesses. The good news is that you can reduce your insurance costs by implementing some conscientious strategies.
Give Your Team Proper Training
One of the most important steps you can take to lower your bar liability insurance costs is making sure your employees understand their jobs. Start by providing your staff with proper training to minimize the possible bar operating risks.
Insurance companies may be wary of insuring your bar if your staff has not been thoroughly and correctly trained. In addition, when your staff has proper training, they are ready to intervene in difficult situations and adhere to alcohol service laws and regulations.
Consider What Is On Your Bar Menu
While most people go to bars to enjoy adult beverages, having food options on the menu is wise. In most cases, food sales are usually a state or local requirement for businesses serving alcohol.
Not only can an expanded menu attract more customers, but it can also affect your insurance rates. As reported by the publication “Bar & Restaurant News,” many insurance companies look at the alcohol-to-food ratio when underwriting policies for bars.
Establishments with moderately priced food choices may get lower liability insurance rates because alcohol-related issues are less likely. If you have sparse food selections at your bar, add inexpensive dishes to help balance the food–alcohol ratio.
Have Policies and Measures in Place to Help People Drink Responsibly
If you can demonstrate that you and your staff are prepared to promote responsible drinking, you may be able to achieve better coverage rates. Begin with signage outside and in the bar, reminding people to drink responsibly.
Always require guests to have a server give them their drinks rather than allow them to get their own. Low-alcohol and non-alcoholic drinks should also be available.
Not pricing drinks too low or offering them at no cost can encourage responsible drinking. Moreover, having a drinking limit can be an effective way to discourage irresponsible drinking.
Review Your Business Hours
In Texas, there is a good reason insurance providers will want to know the hours of operation of your bar. If you want to lower your liability insurance rates, ensure the bar has reasonable hours of operation.
If the bar is open well past midnight, chances of incidents in and outside the establishment are more likely.
This may result in insurance rates being higher. Consider closing earlier to lower these risks. Be sure to post hours of operation clearly outside the door and on the bar’s website.
Along with providing proper employee training, hiring professional bartenders is essential. Not only do professionals have training and experience on how to make drinks correctly, but they can help identify intoxicated customers.
Professional bartenders and staff know how to reduce the risks of overconsumption and help monitor issues that could result from people drinking too much.
Only consider applicants with the right credentials and bartending experience during the hiring process. This can significantly reduce risks and help keep your coverage rates lower.
Keep Minors Away
One of bars’ biggest problems with insurance rates and coverage is serving underage customers or allowing them on the premises. It is against the law for people under 21 to purchase alcoholic beverages.
It is unlawful for bars and other establishments to serve alcohol to anyone under this minimum age. Violating this law carries harsh penalties, including fines and loss of business license.
Bars with a history of serving alcohol to minors are less likely to obtain insurance coverage. Conducting firm ID checks before entry is one way to deter minors from coming into your bar.
Contact Pro Insurance Group for Your Insurance Needs
In Texas, your bar can’t afford to have regular alcohol-related incidents and accidents. Although having bar liability insurance can help mitigate the costs associated with these problems, you may also face steep insurance rates. You can lower your premiums by following these guidelines.
If you need to review your policy or are researching to purchase a new one, contact the team at Pro Insurance Group at 833-619-0770 or visit our website for a quote. We can help you find a policy that fits your needs.