Liquor Liability Insurance

Liquor liability insurance: What every bar and tavern owner needs to know about

Any business that serves, sells, or helps in the use or buying of liquor is at risk of facing a liability claim, if a patron gets drunk to a degree that results in the damage of property or in injuries. Therefore, all the businesses like taverns, nightclubs, restaurants, and bars, face the risk of this liability. Although, logically speaking the person who got drunk should be held responsible for the damages, but in fact the establishment serving the liquor faces the risk of being held liable for the damages, injuries, or both, which happened due to the conduct, behaviors, or actions of a patron who was drunk. That is why having liquor liability insurance is critically important to reduce risk.

Details of Liquor Liability Insurance

Liquor liability insurance covers a business in order to protect it against and liquor liability claims. This insurance is either sold as an add-on to the commercial liability policy, or a completely different liability policy. The coverage offered by this insurance is generally expensive, but depends on the location of your business. However, when you are taking liquor liability insurance policy, then you must consider following things:

  • Battery and Assault Coverage: Generally the claims over restaurants and bars are due to fights. Therefore, the coverage you choose must have battery and assault claims.
  • Includes Defense Costs: Cost of hiring a good lawyer is the most prominent cast that your business would face, when fighting your claims. Therefore, you should buy a policy that covers “defense costs.” Therefore, even if you are getting a low-premium policy, but doesn’t covers this cost, then you should give it a pass, and settle for the policy that covers cost of defense.
  • Employees are Included: It’s common that employees drink despite several warnings, and you shouldn’t ignore this fact. While buying the policy you should insist for covering employees as patrons.
  • Mental Damages are Included: It’s common that several claimant don’t claim for physical damages, but mental damages like: mental anguish, psychological damage, or stress. Therefore, you should include this factor in your policy, as many policies exclude these types of damages. You must know that liquor liability insurance will not cover damages incurred by business due to sales that were against the law and liquor sold to minors.

Choosing the Right Insurance Company

Although there are several insurance companies that provide liquor liability insurance, and this gives you plenty of room to bargain for a decent premium amount that offers maximum coverage. However, there are few other things that you should look for in an insurance company.

Good insurance providers also offer training classes for the employees of the businesses that are opting for their insurance. This training prepares your employees for handling difficult situations when dealing with drunk patrons.

  • Reduced Premium: Insurance companies offer less premium to businesses who have trained their employees for better behavior. If you have a no-claim history than you are given discount in your premium, on each renewals.

You must review the insurance coverage regularly, so that your business is properly insured against any such type of claim. Liquor liability insurance is very helpful, and you should always use it for a secured future of your business.

We look forward to Assisting You with your Liquor Liability Insurance needs!

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