Often times, when a person thinks alcohol, they think celebration. We drink on birthdays, holidays and at college graduation parties, but the truth is if your business serves alcohol you could be at risk. Trouble comes when patrons get into a fight on your property, drive drunk and cause an accident, slip and fall, among other things. A single claim could ruin the business you’ve worked hard to build. So, how do you protect your company from the accidents that come with serving beer, wine or spirits? Enter Liquor Liability Insurance.
You’re not in control of your patrons, but you can take steps to protect yourself. In other words, getting the right insurance policy means you can relax while the party rages on.
At the highest level, this insurance protects a company that manufactures, sells or serves alcohol, against claims that occur when a patron drinks too much and injures himself or someone else.
Unfortunately, this means that if you sell alcohol or liquor on site, then you could be held liable for your patron’s actions and wrongdoings. The issue is, that alcohol can impair the judgement of the consumer and if your business is serving it, it’s important that you are prepared for what may happen next. Restaurants, clubs, taverns and bars that serve alcohol in any form, including wine, beer and spirits could end up footing the bill for damages done by an inebriated patron.
While it may seem unfair, your establishment could be sued if someone drinks at your location and then goes on to cause an accident, damage property or cause injury to themselves or others. Liquor Liability Insurance protects your business in the event of an incident; your standard insurance policy likely will not cover an alcohol-related incident.
“Dram Shop” laws (a law that makes a business liable if they serve a patron who is clearly intoxicated) exist in forty-three states, and make it even easier for you to be sued after one of your overserved patrons causes harm to someone else. There are several ways that your business could be harmed if you serve alcohol but do not have a Liquor Liability Insurance policy in place. If a customer leaves your bar or restaurant and then causes an accident while driving his own or someone else’s car, you could be sued for damages, even though you were not directly involved in the accident. You could also have trouble if patrons get into a physical altercation on your property or at your event after drinking on site; you could be sued by one or both parties if injuries have occurred.
This insurance type protects your business from these types of claims and covers you even if you are sued by your inebriated customers or their victims. If you are sued and do not have liquor liability coverage, you could end up responsible for criminal and civil damages – hefty court costs and legal fees, too. A single claim could damage your reputation and ruin the business you’ve worked so hard to build. Having coverage means protecting yourself, your valuable assets, and your employees and can save you both time and money.