What Types of Businesses Can Use Liquor Liability Insurance?
If you are in the business of serving, distributing, or selling alcohol, you require an insurance policy to protect your investment from liquor-related liabilities. Liquor liability insurance protects your business in case a customer causes property damage or bodily harm while on your premises. You can decide to add it as an addition to your current liability insurance or purchase it as a standalone policy. The following are some businesses that require liquor liability insurance:
Bars and Nightclubs
Customers who visit your establishment may have altercations, and some may result in property damage. An intoxicated customer may also slip and fall on your premises, suing your business for damages. Your bartender can unknowingly overserve a customer, resulting in a lawsuit.
You need to have a backup plan in case of any accidents on your premises. With liquor liability insurance, you protect your bar or nightclub from such occurrences and reduce the financial burden of paying for damages. Where you are not responsible for the customer’s intoxication, this policy will also cover your legal defense costs.
Restaurants
If you have a liquor license for your restaurant, this means you have to serve your customers responsibly. Sometimes, you encounter customers who overindulge in alcohol and become rowdy, disrupting other patrons. In such instances, you can face lawsuits from other customers for not controlling the intoxicated patron’s behavior.
A customer may also complain about poisoning after consuming alcohol on your premises. Without liability insurance, you have to bear the legal fees and any compensatory damages awarded. If a customer gets into a car accident after leaving your restaurant intoxicated, you can be held liable for serving them alcohol. Having a contingency plan for your restaurant business lets you operate even after an incident.
Liquor Stores
As a liquor store owner, you encounter customers looking to purchase alcohol for consumption elsewhere. You are expected to check for identification and refuse sales to minors, as every jurisdiction has laws preventing underage drinking. Some minors may want to use fake IDs to purchase alcohol. When an underage person consumes alcohol bought from your store, you may be held legally responsible.
You also need to watch out for customers who are already intoxicated coming to your store. Training your staff in responsible alcohol sale practices helps you avoid these situations. You can also invest in technology that helps you detect fake IDs as a proactive measure. With liquor liability insurance, you have protection against possible lawsuits and legal fees that may arise from customers overindulging in your alcohol products.
Event Venues
An event where alcohol is served brings in additional risks like fights, which may result in bodily injuries. Having insurance can help you pay compensatory damages if a customer gets hurt while under the influence of alcohol at an event. Take precautionary measures such as hiring trained bartenders and limiting the amount of alcohol served per person. This can help you mitigate the risk of such incidents occurring.
Affirm you have a policy on alcohol consumption at your event and communicate it to attendees. A liability policy is helpful in events like weddings, birthdays, and corporate events where serving alcohol is common.
Breweries and Distilleries
If you own a brewery or distillery, you know that alcohol production involves risks like contamination. In the case of any faulty products, you may be held liable for damages caused by consumption. Having insurance will give you financial protection in such situations and support your business operations.
Updating your staff on quality control measures and regular equipment maintenance aids in reducing the risk of producing faulty products. Insuring your brewery or distillery also covers accidents that may occur onsite due to machinery or processes involved in the production. You can also have coverage for liquor tastings or events hosted at your location, as these activities bring additional risks.
Protect Your Business With Liquor Liability Insurance
Legal claims against your business can interfere with your bottom line and reputation if you do not have the right insurance coverage. Liquor liability insurance serves as a safety net for businesses in the hospitality industry, protecting them from such risks. Reach out to a policy provider who understands your business and its risks to create a tailored insurance plan that will work for you.
