Well if the "insurance cost" - in the form of an expensive Furman surge/voltage protector - is the same as the fee to the insurance company? What then? Either you're insured by the gear thay you buy, or insured by a company who replaces your gear at little or no cost.
However, if it's you yourself that's going to be fried, no insurance company or gear in the world can help. Maybe the insurance company will sue the f*ck out of the bar, but it's little help to you, when you're already dead. Perhaps the people that comes on, after the incident, but I doubt it. The bar just have to close down, no one has that amount of money to buy them free for lethal workplace environment. Not a bar like that though.
I tell you, if that happened i Sweden, the bar would've have to close down immediately. Without any further notice, or notice period. Not even a day. The power grid inspections here on all restaurants and buildings, no matter how shady or underground, are quite Stalinesque. If you can proof that it's the bars fault, which it is, since TV's fumed, and gear that didn't belong to you fumed, all guests/staff in the bar was jeopardized. Since we became members of EU, all flats, apartment and houses had to be converted to only have grounded outlets in the walls. No ungrounded outlets are allowed anymore no matter how old ancient the house is. And while they were at it, they changed out a few other things as well.
I do believe you are assigning blame where it does not belong. The transformer that failed, causing the massive loss to personal property, and yes risk to human life, was not the property of the bar, or the owner of the building, which I believe was probably Landrys Holdings Corp, the transformer that failed (exploded), I believe was about halfway down the block, up on the power transmission pole. That is 100% the property, and responsibility of Texas New Mexico Power Company.
In order to obtain an occupancy permit to operate by the TABC (Texas Alcoholic Beverage Commission) the bar had to have a full inspection, including verification that it meets the NEC (National Electric Code), as well as fire code, national, and city building code, and due to its proximity to the Gulf of Mexico, Texas Windstorm code (Hurricane resistance code). Part of the NEC requires that all
In this circumstance, blaming the bar, or even the property owner is misplaced. The fault lies 100% with the power distribution grid operator. Unfortunately in many parts of the U.S., the grid owners / operators are legally protected by the state, this serves a variety of purposes, I am sure at least one of those is legitimate, some others probably not so much.
Now on the issue of financial recovery, the band that suffered the loss, they were "employed on contract" to the bar, so as I understand the law, and I am NOT a lawyer, but old enough to have seen enough of these cases go through from friends, colleagues etc... to know that the bar owner would be responsible to reimburse the band for their losses, the bar owner would likely have to make a claim against their business insurance, which in turn would pay out, and make a claim for damages against the power grid operator.
As far as the safety aspect is concerned, the bar did their due dilligence. The issue, again is with the power grid operator. The owners / operators of the power grid failed to maintain their equipment in a safe and reliable manner, causing risk to human life and property damage. They are the organization that needs to be held liable, but we go back to the legal protection issue, and I seriously doubt that they will be held liable for their negligence.