Liquor liability insurance covers bodily injuries and property damages that individuals may cause after you sell them liquor. It covers medical bills, repair bills, legal costs, judgments, and settlements when your business incurs liquor-related fines. Business owners will incur penalties or fees when their customers harm themselves or others due to alcohol consumed at their establishment.
Who Should Have Liquor Liability Insurance?
Many states require businesses serving or selling alcoholic beverages to hold liquor liability insurance. Other states require this insurance to obtain a license for your liquor business. Grocery stores, bars, restaurants, and event-organizing companies that serve alcohol during their functions also need liquor liability coverage for their businesses.
Why Does My Business Need Liquor Liability Insurance?
Here are some of the reasons why your business needs a quality liquor liability insurance policy:
Compliance With Legal Requirements
Depending on the location and nature of your business, you may need liability insurance to operate. Legal requirements and their strictness differ depending on the state, and your business’s locality may impact the price of the insurance coverage. The penalties for non-compliance also vary with states. Consult a professional to secure suitable coverage for establishments that sell liquor.
Protection Against Unruly Clients
Alcohol can make your customers unpredictable, which could result in fights and potentially harmful situations. Liability insurance protects your business from such conditions. This policy also covers battery and assault charges to do alcohol-related fights, or damages that an intoxicated customer causes to themselves or third parties. If a customer who was drinking at your establishment attempts to drive home and damages property or harms another person, liability coverage will protect your business.
Maintaining Business Reputation
Liability insurance helps preserve your business reputation by providing compensation to affected parties. It shows that your business takes responsibility for its actions or the actions of your customers. The compensation may cover lost wages, medical bills, and other losses arising from the incident. These acts help in building trust with your customers and maintaining a positive public image.
Promoting Business Continuity
Liability insurance for your liquor business allows your business to continue even after paying compensation to complainants. The insurance company covers the claims, including legal fees, according to the agreement on your insurance policy. It protects your business against financial instability, which allows you to operate normally.
Coverage for Workers
A liability policy helps cover claims arising from incidences that are the fault of your employees. Your workers may overserve alcohol to a customer, resulting in legal claims against your business. When a person ingests too much alcohol from your bar and then gets into reckless activities, causing damages and injuries, your business will be held liable. Your employees may also accidentally sell alcohol to a minor who appears older than their age or lies about their identity. You will be liable for any damage caused by these individuals under the influence of alcohol.
What Are the Types of Liquor Insurance Coverage?
An insurance expert will help you understand the different coverage options to make an informed decision for your business. The following are some liability insurance packages for liquor-related businesses:
Host Liquor Liability Coverage
Host liquor liability coverage is part of general liability coverage and protects businesses that serve alcohol occasionally, like during company events or parties. It protects the company from liability claims that arise from intoxicated guests who cause damage to themselves or others. If a guest causes an accident under the influence of alcohol that your business served, the insurance company would cover the claims.
Liquor Liability Coverage
Liquor liability coverage protects businesses that primarily serve alcohol, such as bars. It protects the company if an intoxicated customer causes damage or injuries to themselves or others. It is more comprehensive than the former and covers legal costs and other expenses related to the claim. If an individual drinks and starts a fight in the bar, this policy will protect your business.
Find a Reliable Liquor Liability Insurance Provider
The charges and legal requirements for liquor liability coverage vary by state. Research and consult with professionals to understand your state’s laws before purchasing this policy. Understand your business type, needs, and possible risks and choose appropriate coverage. Compare multiple providers and choose one with a suitable package for your business.
