As we approach the festive period, nightclubs and late night bars should review their claims defensibility to improve their likelihood of successfully defending a liability claim
Christmas and New Years are often the busiest periods for nightclubs. More people means a higher likelihood for slips, trips and falls. Incidents and injuries can lead to a claim brought against your business, claims which often can’t be helped. The success of a nightclub defending a claim hinges on the defensibility of the business, as well as the quality of their broker.
Through effective claims defensibility, nightclub and late night businesses will be able prove they performed their due diligence and did everything they could to prevent the likelihood of the incident taking place. This will reduce the possibility of a costly claim arising.
All nightclubs and late night venues should have procedures, strategies and legal measures in place at all times designed to prevent accidents that cause liability claims. This includes both preventative measures as well as reactive measures. Nightclubs are at risk from a variety of situations, including personal injury, assault, property damage and negligence.
This brief Claims Defensibility Review by NDML will set out the main risks nightclubs and late night venues face, and what can be done to improve an organisations ability to defend against a liability claim.
Do you know what to do if someone makes a claim against your business?
The key elements of Claims Defensibility for Nightclubs over Winter:
1. Have a Clear and Consistent Policy that is visible to help tackle relaxing standards, Underage Drinking and Tomfoolery
It is a common tradition for people to allow teenagers to try alcohol at Christmas time. Christmas and the festive period if often associated with drinking and revelry for many communities. Therefore expect to see an increase in the number of underage drinkers attempting to enter your venue. The best way to tackle underage drinking and raise standards is to remind staff of their responsibilities and also tell them to be on the look out for poor behaviour.
Remind staff they must challenge all customers who look under 25 years old and they must ask for proper identification. Furthermore, remind staff there is a customer dress code that must be followed, including no shorts, casual wear or headgear.
Have clear signage in place notifying of your legal responsibilities as a licensed venue will help the business’s defensibility regarding discrimination or a claim of this nature.
2. Improve Security Measures inside and outside the venue
It is crucial nightclubs and late night venues have visible personnel on site who manage the security at the venue. Particularly on late winter nights where customers tend to get rowdier, security staff will be ready to de-escalate situation and spot danger.
Having active security personnel will show that the business has actively tried to manage crowd sizes, capacity, business, rowdiness and effective emergency response.
Ensure your security staff are conducting bag checks and screenings. Christmas is peak time for substance abuse, and screenings will help deter against illicit activity. If your venue is found to be liable because of drugs or weapons present, then bag checks and screenings will be key to proving you did your due diligence.
3. CCTV is mandatory
Another key security measure is CCTV surveillance. Before the festive season kicks off, venues owners should check their CCTV is in working order and covers all entry points at the venue. Visible cameras, including security lights and decoy cameras, will deter criminals.
Many councils have licensing requirements for CCTV. To successfully defend claims, certain areas will need to be covered by CCTV.
These are the areas that insurers insist must be covered by CCTV for nightclubs:
- All entry points and exits, including fire escapes
- Dance floor areas
- Bars, drink service areas and dispensing areas
- Lobby areas and vestibules
- Areas where door security are operating
- All stairways and stairwells
NDML have seen instances of cover being invalidated because of poor or incorrect CCTV placement. Review your venue and check all the above areas are covered by CCTV.
4. Monitor alcohol sales and over-consumption
Monitoring drink sales to individuals is key to preventing an incident from taking place. Christmas and New Year attracting binge drinking, so training your staff to recognise intoxication will be necessary to reduce over-serving. Teach staff how to politely explain to a customer they are cut-off as to reduce the likelihood of aggression or an escalation.
Indeed, claims defensibility includes preventative actions; and monitoring drink sales will help prevent over-consumption as well as drink spiking. During peak hours, set limits on how many drinks an individual can buy, and set a precedent to monitor drinks that are left unattended.
5. Train nightclub staff in claims defensibility
The two key areas staff need to always be conscious of is their attitude toward customers, and what to do in an emergency. Winter time is especially busy and vivacious for late night venues, and nightclub staff need to be prepared for busy shifts and loud customers. That being said, there is no right for a customer to be unruly, however it is wise for venue owners to train staff to expect this eventuality – and teach them how to react properly in a situation.
Conflict resolution is key to reducing the escalation to violence. Claim defensibility starts with preventing incidents from taking place on your property.
Staff also need to know how to react when an incident occurs. There should be clear emergency protocols in place for a range of possible situations; these include medical emergencies, fire safety and evacuations.
6. Document and Record Incidents
Keep a record of any incidents that take place at your establishment. Make a note of which staff members were present, as well as the name of any individuals involved in disputes or arrests. Take the contact information of witnesses and note anything which might help your case – such as which security camera caught a view of the incident, or who was responsible for a spillage.
Employees need to know how to properly report incidents and how to file the documents.
7. Review Signage and Accessibility
Physically walk around your venue to assess its suitability for busier periods. Ensure walkways are clear and identify bottlenecks. Note the capacity limit and ensure the nightclub does not exceed this limit – give security staff mechanical people-counters to keep track of entrances.
Check signage and that exits are brightly marked. Review accessibility and disabled access. In case of fire, ensure walkways and paths are clearly marked.
8. Vet Third-Party Contractors
During the festive period, many nightclub owners and late night venue managers will want to run an event. Events will require additional insurance – see Temporary Event Insurance here.
Hiring caterers or food vendors for an event is common. It is crucial operators do their due diligence and vet their third-party vendors. Entertainers and paid DJs are also often hired on a temporary contract. Lay out a formal contract to ensure these vendors and performers adhere to the nightclub’s health and safety standards.
Third-party contractors such as food vendors will need their own liability insurance.
9. Perform Regular Risk Assessments and Safety Audits
When defending a claim, the first question will be the contents and frequency of a business’s safety audit. A safety audit is the main piece of proof a business will have to say they have done their due diligence and followed their legal obligations.
Risk assessments involves a long list of processes and procedures, noting each area of your business. More health and safety implementations can be found on the HSE website and should be understood by your Health & Safety officer.
Risk assessments need to be comprehensive, performed regularly and well documented. Consult with your broker to review your risk assessment.
At NDML we have risk assessment template available, as well as risk management advice.
10. Use the service of a Dedicated Broker
NDML is the leading insurance broker in the nightclub and late night sector. We are the top choice by nightclub industry owners, demonstrating the trust and confidence they place in our abilities. Defending claims is our key skill, utilising our large award-winning inhouse claims team.
Claims defensibility relies on the knowledge and experience of your chosen broker. NDML have an excellent record for defending claims, clearing up claims histories, and improving the cover of businesses.
Contact NDML for a confidential review that won’t affect your current insurance arrangement, today.
