When you talk about the culture of a city, you cannot leave behind the night scenes. Attending these clubs is almost therapeutic for some people. On the other hand, it is one of the most lucrative and exciting endeavour in being a nightclub owner. Understandably, these ventures require a lot of initial investment and so it is wise to get your business covered with nightclub insurance. Many independent insurance agents can work for you and make you understand everything about the coverage.
How much is insurance for a nightclub?
Depending on the establishment, the insurance amount might vary. It depends on a number of factors such as –
· What is the capacity of the nightclub
· Location
· How old is your night club business
· What is the annual sales and revenue
· Is it a venue for live entertainment
Generally speaking, the insurance can cost anywhere between $3,000 to $5,000 a year; however, you must make sure to compare with the various providers before you fix on one.
Is there any need for the clubs to get insurance?
The club owners have the responsibility to maintain the wellbeing of club and society members; but one should also understand that the responsibility of these club owners do not end with taking care of the attending members; they also need to keep in mind about the wellbeing of the assistants and the helpers who provide services and support to the public. There can be chances of any sorts of mishaps for which people should have the entitlement to get an investigation that can have compensation for their claims. Unforeseen incidents for the public members and co- workers can prompt dissatisfaction and can continue a blame game. So, the only logical step is to have an insurance. Briefly, it is necessary for clubs to have liability insurance even when they have different perceived levels of risks associated with the clubs. Looking objectively at the bigger picture, you can understand that the coverage options are available which can be tailored as per the requirement.
Different types of nightclub insurance to opt for-
Building insurance , Contents insurance, Equipment breakdown insurance, Utility interruption insurance, Lost income insurance
If nightclub a profitable business?
If you are interested in starting this business, you have to get a proper business plan, register it properly and be legally compliant. There is some basic inventory and equipment needed and can cost around $100,000 for a modest club to set up. Next, you have to find out about the target market and understand how you can reach out to them to make it a more profitable venture, you can get some famous people to the club who can influence more customers. Make sure that you have the funds for your ongoing expenses such as labour, food, beverage, rent, marketing and insurance.
Did you know that a typical small night club can make around $1,000 to $5,000 per week ($50,000 to $250,000 per year)?
Get some open mic, private parties or comedy nights arranged for more revenue.
How much does public liability insurance cost in Australia?
Depending on the type and nature of your business and your annual turnover, the public liability insurance cost can be around $70 per month. The main factor that influences the cost of this insurance is the type of industry of business you are in and nightclub insurance is definitely one of the sophisticated ventures therefore comes with higher premium. Understand that each Insurance Company assesses the risk in different ways which is why you find out about the different providers before finalizing.