Liquor liability insurance is designed to protect businesses that sell or serve alcoholic beverages. Specifically, this type of insurance covers damages that result from things like fights, careless behavior or automobile accidents caused by individuals who have consumed alcohol.
Liquor liability insurance is important, as it protects you should your clients or patrons sue your business for damages related to their intoxication - something a general liability policy often won’t cover. Liquor liability insurance provides the following:
A method for businesses to meet legal requirements. Depending on the nature of your business and its location, you may be legally required to carry liquor liability insurance. Because the strictness of legal requirements differ from location to location, where your business operates can have a major impact on how you liquor liability insurance is priced. Be sure to speak with an insurance professional to secure the right level of coverage.
Protection against unruly customers. Alcohol can alter an individual’s state of mind and make your client’s behavior unpredictable. This can lead to fights or other potentially dangerous situations. Liquor liability insurance is designed to protect businesses from these situations and is a must for establishments that serve or sell alcohol. It should be noted that assault and battery coverage can often be extended to include specific incidents, such as sexual assault, stabbings and shootings.
Legal fees and court cost reimbursement. In the event that a liquor-related claim arises, legal fees and court costs can add up quickly. Without the right liquor policy, your business could have to cover defense costs itself, which can be a huge financial burden for even the most profitable establishments.
Coverage for employees. Even if you require your employees to serve liquor responsibly, there’s a chance that they may disregard your instructions. Liquor liability policies can cover your employees’ improper actions and better protect your business from liquor-related incidents. What’s more, certain insurers provide training and risk management strategies to policyholders to help educate businesses and employees as well as lower overall liquor liability exposures.
Want to Learn More About Liquor Liability Insurance?
When serving liquor, the best way to protect your business from potential claims is through proper risk management and liquor liability insurance. These policies can be complex, and it’s important to discuss the nature of your operations with a qualified insurance broker.