So, how can you protect your company from any potential accidents that may come with serving beer, wine or spirits? Liquor Liability Insurance.
If your business serves alcohol you could be at risk. If one of your patrons gets into a fight on your property, drives away drunk and causes an accident, or slips and falls, you can be held liable. You can’t always control your patrons, but you can definitely make sure you and your business are protected.
Coverages
This insurance policy protects your company if you manufacture, sell, or serve alcohol, against claims that occur when one of your patrons drinks too much and injures himself or someone else.
Unfortunately, you could potentially be held liable for your patron’s actions. Alcohol can impair the judgement of your consumers, so it’s important that you are prepared for what may happen. Any restaurant, club, or bar that serves alcohol (wine, beer and spirits) could end up paying for damages caused by an intoxicated customer.
If someone drinks at your location and then drives off and causes an accident, damages property, or causes injury to themselves or others, you can still be held liable. Your basic insurance policies (i.g. General Liability) will most likely not cover an alcohol-related claim.
Types of Claims
- Drunk Driving: If your customer gets drunk at your establishment and then gets in a car, you’re at risk in the 43 states that have Dram Shop laws
- Fighting: If your customer gets in an alcohol-fueled confrontation and someone gets injured and sues
- Sexual Assault/Harrassment: If your drunk customer sexually harasses or attacks another customer at your establishment/event
- Slips, Falls and Personal Injuries: If an intoxicated customer injures themselves inside your establishment
Common Coverages
- Assault and Battery (this sometimes occurs when the customer is being escorted from your premises)
- Property damage caused by the intoxicated person
- Personal injuries caused by the intoxicated person
- Your employees, who may drink on the job
- Any legal and court fees related to defending your business from a lawsuit
What’s Not Covered?
This type of insurance is a great choice for many reasons but it doesn’t cover everything. Liquor Liability Insurance usually doesn’t cover:
- Underaged drinking
- Any offenses outside of property damage and bodily harm (i.g. slander, libel, etc.)
- Damage to your own property