Reducing Insurance Rates
Ways to Lower On-Premise Premiums

If you drive a car you already know that if you don’t smoke, you have anti-lock brakes or you use the Lojack vehicle recovery system, you may be eligible for a discount on your vehicle insurance rates. Discounts are available for nearly all insurance you might want to purchase, from life insurance to home owners’ policies. The consumer just has to know what to do to obtain the lower insurance rates. Well, if you own a bar, a restaurant, a pub, a nightclub or any other venue that sells alcohol, you know all too well that insurance rates for your particular type of business are not going down, in fact, in many parts of the country, they are increasing higher and higher. To compound the rising rates is the fact that most liquor licensees don’t know what they can do to lower their insurance costs. I hope that article will help show licensees things they can do to lower their claims and insurance rates. The suggestions you see are based on years of experience within the alcohol service industry, acting as an expert witness in civil litigation and from having discussions with insurance adjustors, brokers and underwriters. Remember, there is no guarantee that if you implement one or all of these suggestions that your insurance rates will fall to an acceptable level or that your insurance company will even take notice. I will guarantee that if you implement as many of these suggestions as possible, you will see a decrease in violence, visits from law enforcement, overconsumption issues, underage drinking issues and we all know that everyone of those issues are a concern with your insurance company. Here we go.

Video
First, the most important thing you can do is to get a camera system. If you spend money on an eBay special or one from any number of discount stores, well, you get what you pay for. Visit “The Show” during International Hospitality Week in February and talk to a number of companies who will have the most current and state of the art equipment on the market. The system may cost you $3,000-6,000 dollars, but if it helps you win just one civil or criminal case regarding service to a minor or a fight, you have paid for the entire system and then some. Don’t skimp in this area.

Training
Next, get your employees correctly trained. Yes, I know, my company offers a great training program that is job-specific and recognized across the country as the industry standard, but what if you can’t afford to bring us in for our two day sessions? Fine, but don’t give up there. Get several bars or clubs together to foot the bill and bring us in. Get your alcohol distributor to foot the bill. If you find that you still can’t get the best training on the market, fine, but get something. The time of having the most experienced bartender hold a new employee’s hand for the weekend and calling that training must stop. Remember, the idea of proper training includes responsible alcohol service training also. And, this might mean on an annual basis. Alcohol sales and the entertainment surrounding the sale of alcohol is a billion-dollar industry and the employees who work in the industry must be trained to handle the serious responsibility.

Policy
Next, create a working policy and procedure manual for every employee position. Having two pieces of paper stapled together and calling that your company manual just isn’t going to cut it. These pages aren’t even close to a policy and procedure manual that a true company would have. Every liquor licensee would benefit from having an employee manual that outlines the details of every job and every possible situation that might arise. From what the company or bar allows when removing a violent patron to simply outlining what someone who is over-intoxicated might look like, these types of simple details will give every employee direction and working standards to follow. Without a current working policy and procedure manual, employees do whatever they were taught at their last job or do whatever they are allowed to do, depending on who is working with them at the time. And, don’t think for a second that your venue is too small to have a comprehensive policy manual ALL establishments that sell alcohol should have one.

Review
Next, create an employee review program and stick to it. At least every quarter have a face-to-face meeting with employees to discuss their jobs, their personal lives, their families and any other issues that might have come up over the past quarter. This means the good and the bad. If an employee knows what you want of them and they hear it on a consistent basis, they are more apt to take the correct action when issues surrounding possible problems arise. These meetings help take the “I didn’t know” responses out of employee interviews or depositions during any litigation that may be coming. Finally, create a method of documenting ANY issue that might lead to ANY litigation in or around your alcohol liquor license. These areas include the actual bar, the bathrooms, the entrance, the parking lot and in some cases the public sidewalk and streets. I know, you’re thinking, “Sure, just about anything could lead to being sued.” Well, this is true, but let’s be realistic here. What we are concerned about are the incidents that an insurance company would want documented to help cover their interest. Here are some examples: Any fight, any assault, any confiscated identification, any minor refused entry, any minor caught in the venue, anytime you stop alcohol service to a patron, anytime you actually call an intoxicated patron a cab, anytime an employee puts their hands on any patron, any slip-and-fall and finally, any visit to the bar by police. You may have questions about these points. Before you disregard any of them, stop and think of them again, talk to other employees or managers about them and, lastly, send me an e-mail about your questions or concerns. I know that you may be doing some or all of these things already but if you were
asked by your insurance company or their attorneys, could you give them real evidence that you are doing these things on a consistent basis?