24-hour Party People – Nightclub Insurance Risks
This month the first Night Tube service launches on London’s Central and Victoria lines. A massive boost to party-goers – and to nightclubs – in the city, it’s being welcomed by the Night Time Industries Association, who say the night-time economy is already worth £66billion and employs around 1.3 million people in the UK.
Many of us might have dreamed of opening a club, but it’s not just about partying and enjoying a buzzing social life. Yes, you get to mix work with some pleasure – but if you’re going to run a successful nightclub you need to be prepared for the serious stuff too. That means strategic planning, dealing with a lot of red tape and preparing for all the risks to your business with the right nightclub insurance.
Your great idea
You might have a knock-out idea for a new club, but you’ll need more than that to turn your dream into a successful reality.
A bit of market research, asking potential customers what sort of nightclubs they like to go to, can save you a lot of money in the long run if it saves you from getting it wrong. Also, look at the sorts of people who live in your area, and visit other nightclubs to decide what will work. If your concept is more important to you than the area, find a town or area where you think your nightclub will be a success.
Getting to grips with the financials
Setting up a nightclub doesn’t come cheap, so you’ll need some significant investment for you to get started. Serious investment means it’s time to get seriously to grips with projected profits and creating a watertight business plan, so investors can see their cash is safe in your hands.
Get out there
You have to make some noise if you want to attract the crowds, so that means investing in some marketing. Flyers, promotions, special events, social media campaigns: create a buzz to get people in the door, and then make sure they have the night of their life so they keep on coming back.
Work closely with suppliers
Nurturing relationships with suppliers is essential so you can negotiate the best deals and have confidence that they’ll deliver when they say they will.
Deal with the legal bits
There’s a lot of essential administration to get through before you can throw open your doors. You’ll need to register your business, obtain the right licenses and make sure you’ve taken out all the legally required, or simply prudent, insurance that you need.
Insuring against the risks
Risk 1)
A punter hurts themselves
Maybe it’s the mix of high heels and drinks. Maybe it’s the reputation for slippy toilet floors at the end of the night or drinks spilled on the dance floor. Or maybe it’s the fact you’ve got a lot of glasses around just waiting to smash.
Whatever way you look at it, nightclubs can be a high risk for accidents and if you want to avoid forking out for legal fees and compensation you’ll need to make sure you have public liability insurance. This insurance covers you for claims from your customers for any damages caused by something to do with your business. You’ll also need to take steps to ensure your customers are safe, from placing warning signs about slippy surfaces to making sure that staff are trained to pick up spills or broken glass immediately.
Risk 2)
An employee hurts themselves
Just like your customers, your employees can be at high risk of accidents on your premises. There are other occupational hazards they may face too, including damage from noise, repetitive strain injuries or violence towards them.
It’s your legal responsibility to take out employer’s liability insurance, and without it, you can be fined. It covers your legal fees and any compensation payout if an employee does make a claim against you. You’ll also need to take steps to ensure your employees can carry out their job safely, from ensuring providing training on lifting heavy boxes to making sure there are not subjected to high levels of noise for prolonged periods of time.
Risk 3)
Cash is stolen
Nightclubs can be a target for thieves because of the large amounts of cash that can be taken each night and won’t be banked until the following morning. Money insurance covers cash on your premises and en route to the bank, so you’ll have peace of mind that if your club is targeted, you won’t be left with a serious cash flow problem.
Risk 4)
Damage to premises
Unfortunately, all those lights and special equipment do put your business at increased fire risk. And have you ever stopped to think what could happen if the beer hoses sprang a leak? Specialist commercial property insurance will pay out in the unfortunate event of fire or flood, so you can get your business open again as quickly as possible. As specialist lighting and quality furnishings don’t come cheap, it’s important not to underestimate your contents.
Take your time to tot up the cost of replacing everything and you might be surprised. You’ll also need to consider the cost of replacing all your stock too.
Understanding your business
Our experienced team at Park Insurance has been helping nightclubs and the catering industry for 30 years. Because we understand the unique needs of your business we can help you to get the right insurance for your exact needs at the best price.
We’ll also make sure that all claims are dealt with quickly and efficiently, so you can get your business back up and running again as quickly as possible.
Contact us now for a no-obligation quote.