The operations of nightclubs expose these businesses to a variety of liability risks, and having assets inherently creates property risks. Nightclub insurance may help Massachusetts clubs protect themselves from both types of risks.
Nightclub insurance is specialized commercial insurance for nightclubs and similar businesses. Policies usually have multiple coverages that protect against liability and property risks.
Most nightclubs located in Massachusetts should carry nightclub policies. Some coverages may be required by law, lease or loan, and other coverages are highly recommended.
The coverages that nightclubs are sometimes required to span several different types of protections:
An insurance agent who specializes in these policies can help nightclubs ensure that their chosen policy includes any required coverages.
Most of the protections included within these policies are either nightclub property insurance coverages or nightclub liability insurance coverages. These categories fundamentally differ in what protections they provide.
Nightclub property insurance coverages normally safeguard physical property that a nightclub has against damage and destruction. These protections might pay on claims related to vandalism, theft, wind damage, fire damage or other specific perils (depending on their terms). Some common property coverages include:
Nightclub liability insurance coverages normally safeguard against lawsuits that could claim a club was responsible for property damage or personal injury. These protections might pay legal defense fees, court fees and settlement fees if a covered lawsuit is filed. Some common nightclub liability insurance coverages are:
Liquor liability coverage is normally a prerequisite for obtaining a liquor license from the state.
Assault and battery coverage might extend protection to a couple of different incidents that nightclubs find themselves involved in.
Should a bouncer get into a physical confrontation with a patron, the confrontation could result in injuries to the patron. Since the bouncer is acting within the scope of their employment, the club too might be found responsible.
Should a fight break out in a club, anyone who suffers injuries (physical or mental) might try to hold the club accountable. They might have legitimate grounds, or they might be seeking more compensation than an individual involved in the fight can pay. In either case, merely defending against lawsuits get expensive.
Whether a nightclub liability insurance policy's assault and battery coverage extend to these incidents depends on the specifics of the policy’s terms.
Nightclub policies’ rates are based on many factors, including a club’s location, square footage, annual claims, chosen coverages and limits, and recent insurance claims history. Still many other factors are considered when underwriting policies.
Despite variances in premiums, most nightclub policies are affordable when the potential cost of a major loss is considered. An independent insurance agent can help clubs find out how much insurance will be for them, by comparing policies from several different insurance companies.
For help insuring a Massachusetts club, contact the independent insurance agents at Garrity Insurance. Our agents will work closely with you to determine what protections your club needs, and then we’ll show you several nightclub insurance quotes that meet those needs. We can help you select whichever one is best for your particular club.