When you picture a successful bar or club, your vision likely centers a lively establishment, filled to the brim with laughing customers who continually reach into their pockets to keep their drinks full and confidence high. This vibrant atmosphere may be great for business, but it comes with a price. Like other social establishments, adult clubs are subject to a number of inherent liabilities that, if not properly mitigated, can mean the end of the most established clubs.
Adult clubs are similar to other bars and nightclubs when it comes to liquor liability. They are responsible for cutting off patrons who appear to have overindulged, especially prior to getting behind the wheel of a car. Clubs frequently find themselves on the other side of lawsuits due to drunk-driving-related injuries and deaths.
2. Harassment and Assault
Another unfortunate consequence of operating a social establishment is the increased opportunity for physical altercations. While assault charges are common results of bar fights, adult clubs must deal with the compounding liability of employee harassment. Adult club entertainers are particularly vulnerable to sexual harassment and assault.
Many successful clubs rent out their venues for private events, and adult clubs are no exception. Event coverage, however, is not included in general liability policies, meaning the cost of any damages or accidents that occur as a result of a third-party event will come out of the club’s pocket.
Although adult club liabilities threaten the livelihood of even the most successful club, it’s possible to mitigate industry-specific risks through careful preventive measures and customized insurance coverage, allowing adult clubs to focus instead on providing patrons an unforgettable experience.