Nonprofit Insurance Program

4 Potential Claims Every Private or Social Club Needs to Know About

By Alexa Connelly
June 09, 2017

Social and private clubs are usually a place members go to relax, unwind, and enjoy their time. Patrons choose to join member-exclusive clubs to spend time with others that share common interests. Membership-based clubs are easy to find in most cities and include the VFW, Knights of Columbus, The Moose, and the American Legion. Each has a unique mission and way of doing business, but they also are prone to similar risks.

Whether you manage or own a social club, here are the top four potential claims you need to understand and how to protect your business.

  • Employee Theft. Most social and private clubs handle cash and high-value products like liquor and food. These items are tempting to certain employees. As a manager, you may think your employees would never steal, but the truth is, employee theft happens every day.

There are steps you can take to prevent employee theft including consistent inventory tracking, video cameras, performing audits, and tracking your expenses. Not every strategy is 100% successful, which is why employee theft insurance is a crucial part of your insurance protection plan. Employee theft insurance protects your money and inventory from being lost forever.


  • Assault and Battery. Many patrons paired with too much alcohol can lead to disagreements from time to time. If these incidents aren’t stopped before things get out of hand, they can lead to violent outbreaks. If fights happen and your club is found guilty of not providing a safe environment, you can be held financially responsible for medical expenses and settlements.

The best thing you can do to prevent assault and battery is to actively monitor patrons’ behaviors and conversations. Stop serving alcohol to those that appear intoxicated. Since you can’t control a member’s every move, it is also important to protect yourself with the right insurance. Ask your insurance agent to add assault and battery insurance to your protection plan today.


  • Alcohol-related incidents. When it comes to serving alcohol, your club is open to a long list of potential claims. From serving underage guests to serving intoxicated guests, it’s risky territory. Monitoring how much patrons consume along with their behaviors is the first step in preventing alcohol-related incidents and claims. It is advisable for bartenders to take the TIPS or other similar courses. Also of importance is that you have a protocol in place for carding everyone and recognizing fake ID’s.

Liquor liability insurance protects and defends your club in the event you are held responsible for alcohol related incidents like auto accidents.


  • Employee injuries. Employee injuries are a common insurance claim for social and private clubs. Most employees are on their feet for their entire shift, lift boxes, carry trays, and keep your club moving. To prevent injuries, create an employee training program that covers proper lifting procedures, requires non-slip shoes, and provide breaks so they can recharge.

Worker’s compensation insurance is mandatory in most states and pays medical payments and time off for injured employees. Provide your insurance agent with a list of employees and their responsibilities to make sure you are properly covered.


Each of these potential claims is serious and requires your attention. Schedule a meeting with your insurance agent to review your existing insurance and fill any gaps in coverage with the right insurance protection.

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