Night Club Insurance | Late Night Bar Insurance

Setting up a Night Club and Night Club Insurance

Night Club Insurance: Always dreamed of owning your own night club? A place where you, your friends could dance the night away, perhaps spin a few discs or be the only ones in the night club? You have thought of a theme (70's disco classics, 80's acid house revisit, 90's club scene rerun or bang up to date noughties magic), you've some DJ mates and think of a good night club you have been to but what do you do now? Who do you approach?
Well first your business because your night club is a business, needs a business plan, which cover this as a minimum:
• Product. What is your main product? Every night club should focus on something specific dance, drink, theme nights? What sort of alcoholic & non alcoholic drinks are you selling? Will the night club supply cocktails? Will you supply ANY snacks or food? Are you planning to provide other products like cigarettes, matches, cigars? Where are you going to buy them from?
• Security. How are you going to make the night club secure from break ins? Security on an evening to stop drunk revellers ruining your night? What dress code are you going to allow in to the Night club? Are you going to allow stag and hen parties? Will you verify age id to stop minors getting in to your night club? How do you prevent drugs being used on the premises?
• Premises. Where will the night club be? You will need to think about:
• Is there a taxi rank near your night club or easy pick up for your guests? Identify what hours will you be open?
• Has the night club premises been used for a night club before? If so why did it close down? Will this cause problems for your insurance? If not check that the council will allow a night club be allowed in this area.
• If the night club premises has been used for music before, does it have a PA system? Is it up to the job?
• Where is your office? Room for accounts etc all within your night club or will you need somewhere extra to the night club?
• Reviewed for fire regulations for the night club?
• What capacity does the night club have?
• Can you have live music there?
• What time can you play music in the night club until? So what time can your guests stay in the night club until?
• Does night club need any additional heating or cooling
• Where will people go if they want to smoke?
• Staffing. How are you planning to stock the drinks? Who is responsible for this? How many Serving staff? Who cleans? Who will look after the accounts? Who will look after health and safety? Who manages the payroll/ government bodies/ VAT
• Customer base. What type of crowd are you aiming at for the night club? Where will they come from?
• Promotion. How and where you will advertise your night club? What is your budget for promoting your night club? On line adverts or promotions? Leaflets and flyers will be handed out where? Special offers? Theme nights? Special guests or famous faces?
• Funding. What is your total investment and running rate for your night club? How are you going to afford that? What happens if you run at a loss for the first 6 months in your night club?
• Pricing Structure. What charges are you going to make on your guests for entrance to the night club? For drinks? Think how you will price the products, to ensure you have repeat business and responsibly sell products, be it using BOGOF, 4 for 3, free first drink or even a members or loyalty card.
• USP. What is your Unique Selling Point? Why should someone dance, drink and basically go to your night club rather than the night club down the road? What makes your night club special? Have you assessed the local night club competition? What do they do well? What do they do that needs improvement? What stops you making the same mistake?

So you have on paper a good idea, what next? Before you splash out on refitting the venue you will need to ensure that:
• Council. The local council will need to be approached for a suitable night club / late night licence to allow late night dancing, the sale of alcohol. Allow plenty of time as council's will need to review your request as well as many others. Don't forget without them you have no night club!
• Register your business (night club) as a company. See companies house for more information. This will need to be put in place if you wish to operate legitimately.
• Printing. You will need flyers, posters, letter headed notepaper and special offers. Try to think of something different. Everyone uses a A5 sized colour flyers so make the promotion of your night club stand out, a different shape or style?
• Banking. You will need at least one separate night club bank account. This will allow you to keep track of all money in and out. The account should only be used for night club business. Set up a credit card payment facility as some customers will want to use credit cards to pay for drinks. Don't forget a high percentage of visitors will want to pay by cash so again think about security within your night club. A bank run will be needed so there isn't too much cash on site.
• Insurance. No surprise you will need night club insurance. The night club insurance will need to cover the night club building and contents (PA system, fittings, fixtures). Also consider PI (Professional Indemnity) and Employers Liability (if you have 5 or more staff). Finally think about Vehicle insurance (any vehicle used for business, Limousines or cash and carry runs etc). These should form your minimum coverage.
• Accountant. Accounts will help you review your annual books for tax purposes and can assist you in running your night club and review your spending plan to ensure you stay profitable for your first few years.
GOOD LUCK - Don't forget your Night Club Insurance!