The nightlife industry is incredibly lucrative, which is why nightclubs seem to be popping up left and right. There are about 20,000 nightclubs and bars in the United States and the highest grossing nightclub makes $70 million in gross revenue annually. However, while nightclubs have the potential to be very lucrative, they also demand a large initial investment. Therefore, it is in the best interest of any nightclub owner to have a good nightclub insurance policy. Here is some information about the benefits of night club insurance.
Benefits of Night Club Insurance Policies
Nightclub insurance is a type of business insurance policy that is designed for nightclub establishment owners. This type of insurance includes a number of coverage options needed to protect nightclubs from risks inherent to the nightlife industry as a whole.
Whether you own a small or large nightclub, you stand to benefit significantly from insurance coverage. In fact, you are required to have certain insurance policies by law. If you took out a business loan to finance the initial investment for your nightclub, your lenders will likely require you to have insurance. Even landlords will require you to carry insurance if you rent out club space.
Night clubs are considered a risky business. Therefore, you should have liability insurance to protect you from lawsuits filed against your nightclub. Liability insurance will provide you with compensation for legal fees and court costs related to any lawsuits filed against your business. An insurance policy can also protect your nightclub’s assets and property. Don’t make the mistake of only paying for insurance policies you’re required to hold by law or due to an agreement with a lender or landlord. Any business that services alcohol to patrons has a higher risk of liability claims and damage. Therefore, even optional coverage is highly recommended to cover your bases.
Unemployment insurance is required by law in most states. Usually, the cost of this type of insurance coverage is included in your state taxes. Your nightclub likely has unemployment insurance coverage if you established and registered your establishment with the workforce agency of your state. In some states, such as New Jersey, California, and New York, disability insurance is required by law. In other states, disability insurance is optional but highly recommended. If you have more than 50 full-time employees, you will need to subsidize health insurance for your employees under the Affordable Healthcare Act.
As you can see, there are many advantages of insurance for nightclubs. For more information about insurance policies for nightclubs, don’t hesitate to contact us here at Tabak Insurance Agency, which serves eight states, including Texas, Michigan, South Carolina, Colorado, New York, New Mexico, Washington State and Oregon.