Bar and pub insurance

When most of your revenue comes from pouring drinks, insurers look at you differently. Patrons stay later, crowds get bigger, and the chance of an intoxication-related claim rises with every round. Many insurers will not write bars at all, and generalist brokers often have only one or two places to send them. As an Ontario brokerage that specializes in hospitality, we work with insurers that actively want licensed establishments, so we can put your bar in front of several of them and find the right fit for your hours, capacity, security and staff training. You can compare licensed drinking establishments with other operations on our page of food business types.

What bar and pub insurance usually includes

A bar package covers the same basics as a restaurant, but with more weight on liquor and patron claims.

• Liquor liability. The core of any bar policy. It responds when someone you served is hurt or injures someone else because of intoxication, including after they leave. Read about how overservice claims are defended.
• General liability. Covers slips on spilled drinks, falls on stairs, injuries from broken glass and damage to patrons’ property. See liability cover for patron injuries.
• Assault and battery. Often excluded or sub-limited in standard policies. We check whether it is included and at what limit with every insurer we approach.
• Property and contents. Covers the bar build-out, draft systems, sound and lighting, furniture, liquor inventory and leasehold improvements.
• Business interruption. Replaces lost profit and pays fixed costs while you are closed after a covered loss. Bars with high weekend revenue feel even short closures. Learn about replacing lost income during a closure.
• Crime. Cash, liquor stock and employee theft are all real exposures.

Risks that are specific to bars and pubs

Overservice

The biggest bar claims usually begin with a patron who was served after showing signs of intoxication, then drove, fell or got into a fight. Ontario courts have held commercial hosts responsible in some of these cases. Documented refusals, an incident log and staff who hold current Smart Serve certification all help.

Example: A regular at a neighbourhood pub in Hamilton stays through a Leafs playoff game and is served several more pints after he starts slurring. Walking home, he steps off the curb and is struck by a car, suffering serious injuries. He later sues the pub, arguing staff should have stopped serving him. Liquor liability responds to his claim and the cost of defending it, up to the policy limit.

Fights and security

Crowded rooms and alcohol lead to altercations. A patron injured in a fight may sue the bar for inadequate security, and a doorman who uses too much force can create a claim on his own. Insurers will ask whether you employ licensed security staff, use cameras and keep incident reports.

Late hours and entertainment

Live bands, DJs, dance floors and trivia nights draw crowds and keep people drinking longer. Insurers rate entertainment and closing time closely. Be specific with us about what you host and how often, so we can take your bar to the insurers most comfortable with it.

Nightclubs

Nightclubs sit at the far end of the scale, with large capacities, dance floors, cover charges and late licences. Fewer insurers write them, underwriting is stricter, and security, capacity controls and assault coverage get the most attention. This is where access to specialty and hospitality-focused markets makes the biggest difference.

Licensing and the AGCO

The AGCO sets the conditions of your liquor sales licence. A suspension or licence violation can affect both your revenue and your insurability, so keep inspection records in order.

Patios and outdoor service

Patio season brings in summer crowds but adds its own exposure: uneven surfaces, heaters, string lights and wiring, and patrons wandering toward the street with a drink. Patio extensions to your licence carry their own conditions, and some Ontario municipalities ask for proof of liability coverage before issuing a patio permit. Tell us when the patio opens and how many seats it adds.

How exposures change by type of venue

Venue	What tends to matter most
Neighbourhood pub with food	Liquor liability, slips and falls, kitchen fire
Sports bar	Large crowds on game nights, assault coverage, big-screen equipment
Cocktail lounge	Higher-value inventory and décor, late hours, overservice
Live music venue	Entertainment exposure, capacity limits, security staff
Nightclub	Assault and battery limits, door staff, specialty insurers

If food is the bigger share of your sales, insurers may rate you more like a sit-down restaurant with a bar. If you brew on site, read how a brewpub or taproom is insured.

Getting a quote for your bar or pub

Use the form on this page to tell us about your bar, including capacity, hours, entertainment and your share of sales from alcohol, or call us at (416) 346-6886. One of our hospitality brokers will ask about your operation, then take your application to insurers that write licensed establishments. We explain the differences in liquor and assault coverage in plain language, set up the policy you choose and stay with you for patio and landlord certificates, changes, renewals and claims. The quote is free and there is no obligation.