If your business sells or serves alcohol, liquor liability insurance is a must.
What does liquor liability insurance cover?
As a business that serves alcohol, liquor liability insurance is essential. This type of policy protects you and your business in the unfortunate event that a customer causes damage or injury after being served alcohol by your business.
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Drunk Driver Coverage
Risk Factor
A guest who has had too much is a danger to themselves and others behind the wheel. And if you served them, you could be at fault.
Solution
Liquor Liability may help cover damages, costs, and legal expenses related to an intoxicated guest who drives and causes an accident.
Slips and Falls Coverage
Risk Factor
If a guest is drinking, they may be more likely to trip, slip, or otherwise fall and become injured. And if you over-served them, you could be held responsible.
Solution
Liquor Liability can cover situations in which you are held accountable for overserving a guest who becomes injured as a result.
Over-Served Coverage
Risk Factor
If a bartender or other staff member is unaware that a guest has had too much to drink, they may serve excessively. If that guest causes harm or damage, your business may be on the hook.
Solution
Liquor Liability can cover claims where a person who became intoxicated at your establishment causes harm, even off-site.
Assault and Battery Coverage
Risk Factor
Alcohol can be fun, but it can also lead to altercations and fights that lead to injuries, lawsuits, and plenty of regret.
Solution
Liquor Liability often includes coverage for assaults or fights that occur due to intoxication, potentially covering injuries, damage to property, legal fees, and settlements.
Legal Coverage
Risk Factor
For some people, drinking at a bar or restaurant is the beginning of their night, not the end. If they cause problems in another location, the injured party may hold you legally responsible.
Solution
Liquor Liability may offer legal protection for instances resulting from alcohol use in your establishment, covering legal fees, damages, and more due to a covered accident.
Your business may be responsible for alcohol-related incidents.
While it might seem unfair, you can be held responsible if you sell alcohol to a customer who then causes property damage or injury to themselves or others while intoxicated. Even if you win in a court case, you could still face legal costs defending a claim. That’s a big problem, as many business policies specifically exclude any claim resulting from an alcohol-related incident. With liquor liability insurance, these costs may be covered by your policy.
Liability risks for businesses that serve alcohol.
To make things worse, most places have what are known as dram shop laws (places where alcohol is sold) that create strict liability for businesses that serve alcohol to somebody who is already intoxicated. That means you can be held responsible for their subsequent actions without any need for proof that you acted recklessly. And while any business that sells or serves alcohol needs this coverage, here are the different types of businesses or establishments that may need a liquor liability policy:
- Bars
- Breweries
- Caterers
- Grocery Stores
- Liquor Stores
- Nightclubs
- Restaurants
- Wineries
Additional coverage options to consider.
Liquor liability insurance covers against such cases, though you’ll need to check precisely what a policy covers. Look for assault and battery coverage, which covers claims against your staff—something that can easily arise if they are escorting a drunk patron off the premises. It may also be worth getting coverage against litigation costs to cover gray area cases where a court awards no damages but each side pays its own legal fees.
Do you run a business that serves or sells alcohol? Contact us to discuss your business and your liquor liability insurance needs.
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