For restaurants, hotels, bars, breweries, and wineries, this presents a major opportunity: increased foot traffic, higher sales, and a chance to be part of a global event. But before you jump in, it’s important to understand how participation can impact your insurance coverage and your bottom line.
Do you have the right coverage ahead of World Cup 2026™? Connect with our Business Insurance team for a free consultation at: insurancesolutions@wahospitality.org.
What’s Changing?
In these designated Fan Zones, customers may be allowed to carry alcoholic beverages outside your business within approved boundaries. While exciting, this introduces a key shift—your exposure may extend beyond your physical premises.
Most policies are designed for your on-premises operations, so coverage likely won’t extend beyond those boundaries.
Key Risks to Consider
- Coverage & Liability
Expanding service into public or shared spaces can create new risks. Carriers may require:
- Approval for participation
- Policy endorsements for off-premises coverage
- Special event coverage
- Certificates of Insurance (COIs) naming the city or event as additional insured
Without these in place, you could take on additional risk that isn’t fully covered.
- Audit & Financial Impact
World Cup™ traffic can significantly increase alcohol sales. While that’s great for revenue, it can also affect your insurance audit:
- A higher alcohol-to-food sales ratio may change your business classification
- Differences between projected and actual sales can result in additional premium owed at audit
Even short-term spikes can impact your annual results.
How to Prepare
Before Participating (60–90 days out):
- Confirm your location is within an approved fan zone
- Notify your broker or carrier of your plans
- Review whether your policy extends to outdoor or designated areas
- Request any necessary endorsements or event coverage
During Planning:
- Track projected vs. actual alcohol sales
- Understand how your business is classified (restaurant vs. bar/tavern)
- Coordinate with event organizers on insurance requirements
After the Event:
- Be prepared for audit review and potential premium adjustments
- Keep documentation of sales and participation
Plan Ahead to Avoid Surprises
Timing matters. Waiting until the last minute (less than 30–45 days out) can limit your options and create potential coverage gaps.
The World Cup™ is a unique opportunity—but like any major event, success comes down to preparation. Taking a proactive approach to your coverage and financial planning can help you fully capitalize on the moment—without unexpected setbacks.
Now is the time to review your coverage and make sure everything is aligned before kickoff. Connect with our Business Insurance team at insurancesolutions@wahospitality.org if you have any questions or concerns about your coverage.
