One area in the LGBT hospitality business that you don’t want to skimp on is insurance. Insurance can protect you and your business from a wide variety of problems, from broken equipment to liability laws. Depending on where your establishment is located, you will need certain types of insurance for your business. You will also need to take out certain types of insurance to satisfy your bank and mortgage loans.

The most common types of club and bar insurance available include:

• Property Insurance- – Protects your property in case of fire or other events. It may not cover natural disasters, such as floods or earthquakes (see below for a policy that covers you). If you have any type of mortgage on your business and/or equipment, then you must have a homeowners insurance policy.

• General Liability – This is the general policy that protects you in case someone slips and falls at your place, gets sick after eating there (whether it was your fault or not). This is a must in today’s world, at some happy time.

• Alcoholic Beverage Liability – Most states require any establishment that holds an alcoholic beverage license to have alcoholic beverage liability as part of its insurance. Helps protect you if a customer drinks too much and drives and hurts themselves or someone else.

• Auto Liability – If you have a company vehicle, this is good insurance. You may be covered under your general liability, but always check with your insurance agent first.

• Workers’ Compensation: Protects you if an employee is injured on the job. Most states require all employers to have some form of workers’ compensation.

• Unemployment Insurance – This is for your employees who no longer work for you until they find a job.

• Life Insurance – Depending on your mortgage and financing, you may need to purchase a sizeable life insurance policy to satisfy your lender. It’s also a good idea to have life insurance, in case something happens to you and your family isn’t left with a restaurant they don’t know how to run and bills they can’t pay.

There is insurance for almost any object, action or person. Here are some other types of insurance you can buy for your restaurant. But keep in mind that these extras will cost you as much or more than what you are insuring.

• Business loss insurance: If you lose sales for a specific reason, this type of policy can recover part of the income. Keep in mind that premiums and deductible can break even, depending on how much you lose.

• Food Contamination Insurance – If you lose power due to downed power lines or a storm, and everything in your walk-in closet and freezer goes bad, this policy will cover food replacement.

• Specific Perils Insurance: Covers many natural disasters that general liability insurance does not cover. Events such as earthquakes, floods or power outages due to any of them, may be covered by this insurance.