"NYC Bars Drowning in Rising Liability Insurance Costs, Leaving Many on Brink of Collapse"
A crippling financial burden is sweeping across the city's bars, forcing many to shut their doors due to skyrocketing liability insurance costs. The rising premiums have made it increasingly difficult for businesses to operate, even those with a spotless record of claims.
According to industry analysts, the factors contributing to these rate hikes are an "increasingly litigious society," growing jury awards, and economic pressures like inflation and labor shortages. Insurers claim that these factors pose significant risks to their clients, leading to increased premiums.
However, many business owners say that the rates simply don't add up. For example, Keith Hamilton, co-owner of Bushwick's Our Wicked Lady, saw his liability insurance costs rise from $2,000 a month to $4,000 by the end of last year. This increase was unsustainable for the 10-year-old bar, which ultimately shuttered its doors.
Industry experts blame an increasingly litigious society and growing jury awards for driving up premiums. However, business owners point out that their venues have made zero liability insurance claims in a decade, yet saw rates double.
"It's really bad," Hamilton said. "There's no rhyme or reason for it." Mark Kleback, co-owner of 7-year-old Bushwick arcade bar Wonderville, echoes this sentiment, stating that the costs are "worse than rent" and that acquiring insurance is opaque and antiquated.
The situation has sparked concerns among advocacy groups and experts. Dhruv Chopra, co-founder of Elsewhere and a go-to for liability insurance advice, has seen firsthand how these rates are affecting businesses. He argues that insurers often have "very cookie cutter silos for how they think about risks," which doesn't account for the unique nature of nightlife in New York.
As the situation continues to unfold, many are left wondering if the industry's focus on prevention is having an unintended consequence: stifling the very thing it's supposed to protect – creativity and community.
A crippling financial burden is sweeping across the city's bars, forcing many to shut their doors due to skyrocketing liability insurance costs. The rising premiums have made it increasingly difficult for businesses to operate, even those with a spotless record of claims.
According to industry analysts, the factors contributing to these rate hikes are an "increasingly litigious society," growing jury awards, and economic pressures like inflation and labor shortages. Insurers claim that these factors pose significant risks to their clients, leading to increased premiums.
However, many business owners say that the rates simply don't add up. For example, Keith Hamilton, co-owner of Bushwick's Our Wicked Lady, saw his liability insurance costs rise from $2,000 a month to $4,000 by the end of last year. This increase was unsustainable for the 10-year-old bar, which ultimately shuttered its doors.
Industry experts blame an increasingly litigious society and growing jury awards for driving up premiums. However, business owners point out that their venues have made zero liability insurance claims in a decade, yet saw rates double.
"It's really bad," Hamilton said. "There's no rhyme or reason for it." Mark Kleback, co-owner of 7-year-old Bushwick arcade bar Wonderville, echoes this sentiment, stating that the costs are "worse than rent" and that acquiring insurance is opaque and antiquated.
The situation has sparked concerns among advocacy groups and experts. Dhruv Chopra, co-founder of Elsewhere and a go-to for liability insurance advice, has seen firsthand how these rates are affecting businesses. He argues that insurers often have "very cookie cutter silos for how they think about risks," which doesn't account for the unique nature of nightlife in New York.
As the situation continues to unfold, many are left wondering if the industry's focus on prevention is having an unintended consequence: stifling the very thing it's supposed to protect – creativity and community.
I mean, I get it, liability insurance is important, but $4k a month for a bar in Bushwick? That's like renting out your space for free 
The industry needs to find a better solution than just passing on these costs to the business owners. It's not fair to the 10-year-old bars that have been around for decades with zero claims 
We need some creative thinking from insurers and policymakers, or we might see even more businesses close their doors 
. It's one thing to have a spotless record but another to get slammed with insane premiums that just don't add up 
. I mean, who hasn't heard of a bar making zero claims in a decade? Yet, rates still double 
. This is all about the business owners being forced to play by insurers' rules rather than having their unique needs considered 
. Can we find a better balance between safety & sustainability for our nightlife scene? 
this raises some deep questions about the cost of 'safety' vs 'community'. it's like, we want bars to be safe, but at what expense? do we really need all these lawyers and insurance policies holding us back from having a good time? 
because of those rising insurance costs. It breaks my heart, you know? It's like the bars are being suffocated by these giant insurance companies... I mean, what's next? The city is going to start charging us for breathing oxygen 
. The problem isn't that people are getting too litigious or whatever, it's just that the system is broken and needs a shake-up.
[Image of a person drowning in water with a bar tab stuck to their head]
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... like, they're already struggling just to stay afloat in this crazy city, and now they gotta deal with super high insurance costs too? It's like, what's next? They'll have to close their doors because they can't afford the lights 
. I mean, I get it, insurers wanna protect themselves, but come on! These bars are doing everything right - no claims for years 
. And now they're getting squeezed by these rising rates? It's just not fair 
...
. Maybe we need to find ways to make insurance more flexible or even community-based so it supports, not stifles, small businesses and the people who rely on them 
. It's a shame because bars are such important parts of city culture and community 
.
it's like the city is losing its soul 
. It's like they're being squeezed by the insurance industry for no reason, you know? I've been to Bushwick's Our Wicked Lady a few times and that place had amazing vibes 
. But if they can't afford the sky-high insurance rates, it's game over...literally 
.
.
. Otherwise, we'll just see more great spots like Our Wicked Lady shutting down for good