Protecting yourself from claims is an important reason for any business owner to have insurance, but if you are an active vendor selling alcoholic beverages, your liability risks are taken to another level. Liquor liability insurance provides coverage for bodily injury or property damage caused by an intoxicated person who was served liquor (alcohol) by the policyholder.
Why you need it
Businesses that need liquor liability coverage often fail to purchase it, often times they are under the impression that a liquor license automatically covers them from any incident (think again!). Business owners may underestimate the liability risks associated with intoxicated patrons. A drunken customer of a bar or restaurant may become aggressive and start a physical altercation with another patron. Or a drunken customer can cause an auto accident after leaving the premises. Anyone injured in the accident, including the drunken customer, could potentially file a lawsuit against the business that provided the alcohol.
When you may need it
- Hosting a party for employees, clients, vendors, etc. where alcoholic beverages are available.
- Gifting alcoholic beverages to clients, vendors, or employees on holidays or special occasions.
- Sponsoring an offsite trip or excursion that includes the consumption of alcoholic beverages.
- If you serve any alcohol at your business or sponsored events.
Keep in mind that your premium payment can increase with each claim you submit to your insurance company. So, it’s a good idea to further protect yourself by training your staff on the proper way to serve liquor and how to quickly recognize intoxicated bar patrons or minors. Also, be sure that litigation costs are included in your liquor liability policy to protect yourself from large out of pocket expenses that could prove detrimental to your business.
Contact one of our commercial insurance professionals if your business needs a liquor liability policy.
