Suppose you own or operate a business that serves or sells alcoholic beverages, such as a bar or restaurant. In that case, it's important to protect yourself from the potential liabilities that can arise from the sale or service of alcohol. Liquor liability insurance can help provide that protection.
Liquor liability insurance is commercial insurance that covers businesses selling or serving alcoholic beverages. It can cover claims related to injuries, property damage, or other damages that may result from the sale or service of alcohol.
Why Do You Need Liquor Liability Insurance? There are several reasons why businesses that serve or sell alcohol need liquor liability insurance, including
Alcohol-related incidents can be costly
If someone is injured or property is damaged due to the sale or service of alcohol, the costs can be substantial. Liquor liability insurance can help cover these costs and protect your business from financial losses.
It's often required by law
Many states and local jurisdictions require businesses that sell or serve alcohol to carry liquor liability insurance. Failing to carry the required coverage can result in fines or even the loss of your liquor license.
It can protect your business's reputation
If it is involved in an alcohol-related incident, it can damage your reputation and potentially hurt your bottom line. Liquor liability insurance can help protect your business's reputation and minimize the impact of any incidents that may occur.
Liquor Liability Insurance Covers
Bodily injury If someone is injured due to being served or sold alcohol at your business, liquor liability insurance can help cover the costs of medical treatment, legal fees, and other related expenses.
Property damage If property is damaged due to the sale or service of alcohol, liquor liability insurance can help cover the costs of repairing or replacing the damaged property.
Legal defense costs If your business is sued due to an alcohol-related incident, liquor liability insurance can help cover legal defense costs.
Settlements or judgments If your business is found liable for damages related to an alcohol-related incident, liquor liability insurance can help cover the costs of any settlements or judgments that may be awarded.
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Third-party property damage
Third-party bodily injury
Increased cost of compliance
Libel and slander
Underage drinking
Third-party property damage coverage
Risk Factors
An intoxicated customer leaves your establishment and goes on to vandalize a building. Liquor liability insurance can pay for the damages and related legal expenses up to the amount of your policy’s limits.
Solution
Liquor liability insurance can cover the cost of repairing or replacing another person’s property that was damaged by an individual who became intoxicated at your business.
Third-party bodily injury coverage
Risk Factors
An intoxicated customer stumbles into another customer at your bar, who falls and breaks an arm. The injured customer sues to recoup the money spent on medical bills.
Solution
Suppose a patron who became intoxicated at your business injures another person. In that case, liquor liability insurance can help pay for immediate medical or legal expenses if the injured person sues your business. Your policy can cover the cost of your customer’s direct medical expenses, such as the ambulance ride and emergency room visit.
Increased cost of compliance coverage
Risk Factors
An overserved patron can cause accidental damage to his property or himself and file a lawsuit against you later.
Solution
If a lawsuit is filed over an incident related to an overserved patron, liquor liability insurance can help cover Court costs, Attorney’s fees, and Settlements.
Libel and slander coverage
Risk Factors
Libel and slander can make your business liable for any sort of expenses or damages to a person mentally or physically.
Solution
For claims of libel and slander, general liability insurance can provide protection, as long as the policy doesn’t have an exemption for alcohol-related claims.
Underage drinking coverage
Risk Factors
Though incidents related to underage drinking cannot be protected against with insurance, you may have legal recourse if the minor had a realistic-looking fake ID.
Solution
It is always better to consult your insurance advisor and get accurate coverage for the same.
At our Insurance Agency, we understand the unique risks faced by businesses that serve or sell alcohol. As a result, our liquor liability insurance policies can be tailored to meet the specific needs of your business and provide the protection you need to operate confidently.
Contact us today to learn more about our liquor liability insurance coverage and how we can help protect your business.
