If your business sells or serves alcohol, getting liquor liability insurance is a good idea. If a customer becomes intoxicated and injures themself or someone else, the injured patron or third party could end up suing your business for damages. Having liquor liability insurance will protect your business from situations such as these.
Why You Need It
Most businesses typically have a general liability policy, which protects against bodily injury, property damage, medical expenses, and others. Some businesses underestimate the liability risks associated with intoxicated customers, so they fail to purchase liquor liability coverage. Keep in mind that you can not always control your patrons; a drunken customer could become unruly and start a fight. On the other hand, a customer could cause a car accident after leaving the premises. Anyone injured in the accident could file a lawsuit against your business.
What to Look For
When shopping for liquor liability coverage, there are a few things to look out for. Assault and battery coverage is not always included in liquor liability policies, so it may need to be purchased separately. This covers incidences in which claims are made against bars and restaurants as a result of fights. Also, check that your policy pays for defense costs outside the policy limit. Attorney fees and other legal expenses could reduce or exhaust your policy limit, so you could end up with little to no insurance to pay for damages. It is also a good idea to check whether your policy covers damages for mental injuries, as some claimants may say they were injured in non-physical ways, such as mental anguish, stress, or psychological injury.
What It Doesn’t Cover
Liquor liability insurance does not cover libel and slander, damage to your business property, or incidents related to underage drinking. General liability insurance, however, can provide protection for claims of libel and slander as long as the policy does not have an exemption for alcohol-related claims. It does not cover damage to your business property, even if the damage is caused by an intoxicated customer. Commercial property insurance can help pay for the cost of repairs to your business property. Incidents related to underage drinking cannot be protected against with insurance, but you may have legal recourse if the minor had a realistic-looking fake ID. Employees should be trained to card each individual and know how to recognize fake IDs.
Liquor liability 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. With HH Insurance, having coverage means protecting yourself, your valuable assets, and your employees, saving you both time and money. We work with exclusive insurance markets that deliver you better coverage at the lowest rates. Contact us!