New York City Bars on the Brink: Crushing Liability Insurance Costs Threaten to Shut Doors Forever
The Big Apple's iconic bars and pubs are facing an existential crisis, as crippling rises in liability insurance costs have made it impossible for many to stay afloat. The numbers don't lie – over the past year, liability coverage rates rose by 2.3% nationwide, with New York businesses experiencing hikes of 10%, sometimes higher.
The issue is particularly dire in New York City, where insurance premiums average 15% higher than the rest of the country. This has led to venues struggling to stay open, with some forced to close their doors due to unaffordable liquor liability coverage. According to industry analysts, this trend is not only hurting small businesses but also stifling the city's vibrant nightlife scene.
"I'm shocked," said Keith Hamilton, co-owner of Bushwick's Our Wicked Lady, whose 10-year-old bar was shuttered in July due to unsustainable liability costs that rose from $2,000 a month to approximately $4,000. "We made zero claims yet our rate doubled."
Industry experts attribute the rising costs to an increasingly litigious society, growing jury awards, and economic pressures such as inflation and labor shortages. Insurers claim that the rising rates are necessary to account for these factors.
However, many business owners argue that the increases don't make logical sense. "There's no rhyme or reason for it," Hamilton said.
The situation has led to a shift in how venues operate, with insurers pushing for earlier closures and tighter controls. Insurers even use social media to shame venues into presenting themselves as more cautious, creating an incentive to be sterile and risk-averse.
"It feels like a scam," said Mark Kleback, co-owner of Bushwick arcade bar Wonderville. "I hate every single part of the industry. I wouldn't recommend opening a small business because of insurance."
As the crisis deepens, local advocacy groups are calling for change. The Neighborhood Venue Alliance organized a panel discussion on the topic, with Dhruv Chopra, co-founder of venue Elsewhere and go-to liability insurance advisor, sounding frustrated.
"There's just not really how nightlife works," Chopra said. "It's not cookie-cutter silos for how they think about risks."
With no end in sight to the crippling increases, it remains to be seen whether New York City's bars can survive the onslaught of crushing liability insurance costs.
The Big Apple's iconic bars and pubs are facing an existential crisis, as crippling rises in liability insurance costs have made it impossible for many to stay afloat. The numbers don't lie – over the past year, liability coverage rates rose by 2.3% nationwide, with New York businesses experiencing hikes of 10%, sometimes higher.
The issue is particularly dire in New York City, where insurance premiums average 15% higher than the rest of the country. This has led to venues struggling to stay open, with some forced to close their doors due to unaffordable liquor liability coverage. According to industry analysts, this trend is not only hurting small businesses but also stifling the city's vibrant nightlife scene.
"I'm shocked," said Keith Hamilton, co-owner of Bushwick's Our Wicked Lady, whose 10-year-old bar was shuttered in July due to unsustainable liability costs that rose from $2,000 a month to approximately $4,000. "We made zero claims yet our rate doubled."
Industry experts attribute the rising costs to an increasingly litigious society, growing jury awards, and economic pressures such as inflation and labor shortages. Insurers claim that the rising rates are necessary to account for these factors.
However, many business owners argue that the increases don't make logical sense. "There's no rhyme or reason for it," Hamilton said.
The situation has led to a shift in how venues operate, with insurers pushing for earlier closures and tighter controls. Insurers even use social media to shame venues into presenting themselves as more cautious, creating an incentive to be sterile and risk-averse.
"It feels like a scam," said Mark Kleback, co-owner of Bushwick arcade bar Wonderville. "I hate every single part of the industry. I wouldn't recommend opening a small business because of insurance."
As the crisis deepens, local advocacy groups are calling for change. The Neighborhood Venue Alliance organized a panel discussion on the topic, with Dhruv Chopra, co-founder of venue Elsewhere and go-to liability insurance advisor, sounding frustrated.
"There's just not really how nightlife works," Chopra said. "It's not cookie-cutter silos for how they think about risks."
With no end in sight to the crippling increases, it remains to be seen whether New York City's bars can survive the onslaught of crushing liability insurance costs.
. Who knew a few bad falls could put an entire industry out of business? 
The rising liability insurance costs are having a devastating impact on small businesses like Our Wicked Lady and Wonderville. It's just not sustainable to have a 10% increase in rates, especially when you're making zero claims 
.
. And the social media shaming? Give me a break! It's just another way to squeeze more money out of businesses that can't afford it 
. We need to find a solution that balances business safety with the need for creativity and risk-taking. Maybe we can explore alternative insurance models or government programs to support struggling venues 
.
. We can't let the rise of crippling liability costs silence our vibrant nightlife scene once and for all 
.
. And yeah the industry experts say its due to litigous socieity, jury awards etc 
Its just not fair to all these small businesses & their owners. I feel bad for Our Wicked Lady & Wonderville, hope they can get back on their feet soon 
they're already struggling as it is, and now they gotta deal with this? 
when did liability insurance get so out of hand? 
someone needs to step in here and help these businesses out. 
. And honestly, who needs a sterile bar anyway? The whole vibe of NYC nightlife is all about letting loose 
. Can't they just find a way to make it work without turning everyone into a lawsuit-happy robot? 
. 2k to 4k a month is crazy, what's next?! insurance for breathin' 
. we need to find a balance or else all the cool bars are gonna disappear 
.