Restaurants--with Sale of Alcoholic Beverages 75%+ of Total Annual Receipts--Bar Service Only: with Dance Floor

What Does GL Code 16940 Cover?

ISO GL class code 16940 specifically covers restaurants where the sale of alcoholic beverages constitutes 75% or more of total annual receipts, operating with bar service only (no tables), and featuring a dance floor. This classification is designed for establishments primarily focused on beverage sales and entertainment, distinguishing them from traditional dining venues due to the increased general liability exposures associated with alcohol consumption and dance activities. It accounts for operations where the primary revenue stream is from alcoholic drinks, often accompanied by music and dancing.

Who Uses This Class Code?

This code applies to establishments such as nightclubs, dance clubs, bars with significant beverage sales and a dance floor, and taverns that prioritize alcohol service over food. Businesses that operate primarily as a bar or lounge with a dedicated dance area, and where food sales are minimal compared to alcohol receipts, would fall under this classification. Examples include high-energy dance venues and late-night bars.

Common GL Claims for This Class

Common claims include liquor liability incidents such as patrons being over-served and causing accidents, slip-and-fall injuries on the dance floor, and assault and battery claims arising from altercations between patrons or with security staff.

Coverage Tips for Code 16940

• Ensure your policy includes robust liquor liability coverage, as this is a primary exposure for establishments where alcohol sales are 75% or more of receipts, especially with a dance floor.
• Carefully review your policy for assault and battery exclusions; consider purchasing specific coverage or endorsements to protect against claims arising from altercations on premises, particularly in a high-energy environment with a dance floor.
• Be prepared for annual audits based on gross receipts from alcohol sales, as this is the basis for premium calculation; accurate record-keeping is crucial to avoid unexpected premium adjustments.
• Implement and enforce strict security protocols, including trained bouncers and surveillance, as these measures can significantly mitigate liability risks and may influence your insurance premiums.