Without a doubt, running nightclubs and late-night bars can be an exciting business prospect. With a nightclub, you have the chance to host many dazzling events that delight your guests and can prove to be very lucrative for your business. However, without the right insurance for nightclubs, you may find your business extremely vulnerable with the potential costs of accidents, damage and unforeseen events.
By protecting your nightclub with the right nightclub insurance policy to suit your needs, you can save your business and protect your clients in the event of an unexpected situation. Unfortunately, many nightclubs neglect their insurance commitments. When insurance for nightclubs is not considered, it can lead to devastating consequences for visitors and the nightclub business itself. Here are six examples of times where operators needed protection and insurance for nightclubs.
Six times where insurance for nightclubs should have been considered
- Loss of licence
Due to unfortunate events, nightclubs are at risk of losing their licence. When a nightclub loses it licence for music or alcohol, this can mean the closure of the business and nightclub. For example, popular London nightclub, Fabric was forced to close when its licence was revoked. The Fabric nightclub lost its licence because of an inadequate drugs policy and poor staff intervention, and as a result, two people died due to drugs-related issues at the venue.
When situations like this occur, closure for a period of time is inevitable. For most businesses, a closure results in significant financial losses that the business may not be able to pay. Loss of licence insurance provides cover and financial protection if a nightclub is forced to close and is waiting for its licence to be reinstated.
Your nightclub is likely to be a lively place with many revellers and excitable people. With this, the contents of your nightclub could suffer damage. For example, furniture and fixtures may suffer from wear, tear and accidents, while equipment may be damaged, lost or stolen during an eventful night.
For example, in 2017 manager of The Locomotive nightclub in Burton reported the theft of his laptop from the nightclub. Unfortunately, incidents like this can happen when you have a busy venue and protecting contents can be forgotten. Had they consider insurance for nightclubs and contents insurance, they could have protected their business equipment in the event of accidents, damage or theft.
Sadly, unexpected situations can hit your business and cause significant damage and financial repercussions. For example, fires and floods can cause business closure when you least expect it and may not even be caused by your business.
For example, a blaze at the Opal Lounge nightclub in Edinburgh forced the venue to close while firefighters had to tackle the fire and then for the repair work after the fire. In cases such as these, business interruption insurance can prove invaluable as it can help to protect your income during the time your nightclub has to remain shut. This type of insurance can cover wages and fixed business expenses to reduce the stress when disaster strikes.
- Public liability
In most nightclubs, there will have been a situation where a member of the public has suffered an injury at your nightclub establishment. Especially with alcohol being present it can lead to unsafe acts and potentially unkind behaviour to other customers. Public liability insurance is vital for nightclubs as there have been many cases where customers have sought compensation as a result of an injury, for example falling on stairs or slipping on a wet floor.
While a situation may occur that may not be the direct fault of the nightclub, often a slip in standards can cause neglect on the part of the nightclub. Usually, when an unfortunate incident happens, blame can be found in all manner of places, and nightclubs need to be equipped to take on issues of negligence.
For example, people are suing the Mangle E8 nightclub for negligence based upon an acid attack incident where a customer injured 22 people with grievous body harm and actual bodily harm. People are arguing that the club should have conducted the appropriate checks to prevent this situation from occurring. With insurance, nightclubs can help to pay for expensive legal fees associated with lawsuits of this nature.
- Employer’s liability
Employer’s liability insurance is a required form of insurance for any business that employs staff. Employees can be protected from accident and injury as a result of their workplace with employer’s liability insurance.
For example, at Halo nightclub in Bournemouth, three nightclub staff members were injured after a car was driven at them. With employer’s liability insurance the business can help to pay for the necessary compensation and legal costs they face when dealing with an employee situation such as this.