It is common for businesses such as restaurants and clubs to serve some sort of alcohol. With the availability of alcohol, also includes the possibility for issues. Fights, careless behavior or automobile accidents caused by individuals who have consumed alcohol are always a risk. While you can’t control other peoples behavior, you can make sure you and your business are protected.
What is Liquor Liability Insurance?
Liquor liability insurance is designed to protect a business that sells or serves alcoholic beverages. This type of insurance covers damages that result incidents by individuals who have consumed alcohol. It protects you should your clients or patrons sue your business for damages related to their intoxication. This is not something a general liability policy would cover.
4 Reasons You Need Liquor Liability Insurance
- A method for businesses to meet legal requirements. Depending on the type of business you have and it’s location, it may be legally required to carry liquor liability insurance. The strictness of legal requirements differ from location to location. A businesses location can have a major impact on how your liquor liability insurance is priced. Be sure to speak with an insurance agent to ensure you have the correct levels of coverage.
- Protect against unruly customers. Alcohol can alter peoples state of mind and make your patrons behavior unpredictable. This can lead to fights or other dangerous situations. Liquor Liability Insurance is designed to protect businesses from these situations and is a must for businesses that serve or sell alcohol.
- Legal fees and court cost reimbursement. In the event of a liquor-related claim, legal fees and court costs can add up quickly. Without liquor liability insurance your business could be on the hook for the legal fees. Defense costs itself can be a huge financial burden for even the most profitable businesses.
- Coverage for employees. Even if you require your employees to serve liquor responsibly, there’s a chance they may disregard your instructions. Liquor liability policies can cover your employees’ improper actions and better protect your business from liquor-related incidents. Also, some insurers provide training and risk management strategies to policyholders to help educate businesses and employees as well as lower overall liquor liability exposures.
When serving alcohol, the best way to protect your business from potential claims is through proper risk management and liquor liability insurance. These policies can be complex so it is important to discuss your options with a qualified insurance broker.
Please contact our office to talk to an agent today about your options