What Insurance Do Edmonton Bars and Pubs Need?

What Insurance Do Edmonton Bars and Pubs Need?

July 4, 2024 / 5 mins read

Serving alcohol at your Edmonton bar or pub always brings risks. You need to protect your bar or pub from liquor liability claims that allege third-party bodily injury or property damage as part of a customized bar insurance package.

Liquor liability insurance for your Edmonton bar, pub, or lounge, is essential insurance coverage that you need when you are serving customers alcohol.

If you own a bar or pub in the Edmonton Metropolitan Area, your Western Financial Group business insurance expert will give you top commercial insurance advice for your licensed establishment and at the right value for you.

What is Edmonton bar and pub insurance?

Edmonton bar and pub insurance is a package coverages that protect your licensed establishment. Liquor liability insurance is an essential part of your Edmonton bar insurance.

Without pub and bar insurance, 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 bar.

How much does Edmonton bar and pub insurance cost?

There isn’t a one-size-fits-all price for Edmonton 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

Did you know? ProServe is Alberta's responsible liquor service and sales program. ProServe is designed to help ensure that liquor is sold and served according to law and Alberta Gaming, Liquor and Cannabis policies, and in a way that keeps customers, guests, and others safe from alcohol-related harms.

ProServe certification is mandatory for full- and part-time workers in positions where liquor is provided.

As an Edmonton pub, bar, or tavern owner, here’s how insurance protects you from risks associated with your establishment:

  1. A bar customer trips on a cord near the bar. She has fractured her wrist. She then decides to sue your Edmonton bar. Your commercial general liability insurance can help pay for her medical expenses and your legal fees.
  2. A customer has left your Edmonton pub and then hits another car while pulling out of his parking spot. Alcohol is determined to be a major factor in the accident. Your bar gets sued. The liquor liability insurance that your bar carries may help cover your legal fees to defend yourself and the customer’s medical expenses.
  3. Your Edmonton pub’s customer credit card information is hacked by cyber thieves. Your cyber liability insurance can help cover the costs associated with repairing your computer system and any legal fees.

An insurance package for Edmonton 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.

Commercial general liability (CGL) insurance: It 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 as an Edmonton bar or pub owner.

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 Edmonton bar would carry a minimum of $2 million in CGL coverage and more depending on its size and its alcohol sales.

Commercial building and contents insurance

Commercial property insurance helps protect your 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 your Edmonton bar or pub processes 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.

You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a breach.

Equipment breakdown insurance: Your Edmonton 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 Edmonton 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 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 Edmonton 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

What do I do if I have a claim against my Edmonton bar or pub?

  • Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
  • Know your policy so that when you contact your broker you are familiar with what will be covered or not.
  • Document the damage. Take photos right away and write down what happened.
  • Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
  • Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
  • Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.

Here’s an insurance checklist:

  • Do you have the best business insurance rate that suits your work?
  • Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
  • Are you or your employees using personal vehicles for work?

Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the best insurance coverage as an Edmonton bar, pub, or lounge owner. Our experts are available now to help you navigate the business insurance journey to protect your Edmonton business.

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