Frequently Asked Question:

Does Bar Insurance Cover Lost Income When a Fire or Equipment Failure Forces You to Close?

Insurance Type
Related Industries
Related Coverages
Commercial Property

The Short Answer

Yes, if your policy includes business income coverage and the closure results from a covered loss such as a fire. It generally does not pay for income lost to a liquor license suspension.

The Full Answer

A bar with no customers still has rent, payroll, and loan payments. Business income coverage, usually written with the property policy, replaces the net income you would have earned and covers continuing expenses while the bar is closed for repairs after a covered loss.

What business income coverage pays and does not pay:

Covered causes. The closure must come from a covered physical loss, such as fire, storm damage, or a burst pipe. Check which causes your policy names.

Waiting period. Many policies apply a waiting period before coverage starts, often 72 hours, so the first days of a closure may come out of your pocket.

Equipment and spoilage. Cooler failures, draft system breakdowns, and spoiled inventory usually need equipment breakdown or spoilage coverage added.

Not covered. A liquor license suspension or a government order unrelated to physical damage typically does not trigger business income coverage.

How Liberty structures your protection: We set your business income limit using your actual revenue and recovery time, add extended coverage for the ramp-up after reopening, and confirm equipment breakdown and spoilage are included where you need them.

Related Questions

It depends mostly on your specialty and state. High-risk surgical specialties pay many times what primary care or psychiatry pays, and rates in some states run far above others.

Tail coverage, or an extended reporting endorsement, lets a claims-made policy keep responding to claims filed after the policy ends. You need it when you leave a claims-made policy without prior acts coverage from the next carrier.

Claims-made covers claims filed while your policy is active. Occurrence covers incidents that happened during the policy period, even if the claim comes years later.

Contact Us

More questions? Talk to an Expert

Contact Liberty to work with an expert that can answer all your questions.