Operating a bar or a business that sells alcohol exposes you to liability from accidents that intoxicated persons can cause. You should consider investing in liquor liability insurance to offset such risks, otherwise, they can harm your operations. Such an insurance cover might be a legal requirement for your business, but the rules vary from one state to another. Using the liquor liability cover increases your chances of success by allowing you to operate without worrying about damages to your venue or reputation.
This article offers insight into what liquor liability insurance covers.
Third-Party Property Damage
Anyone who drinks at your establishment can cause damage to other people’s property. The fact that they were served alcohol at your business exposes you to liability if third-party property owners decide to sue. Having liquor liability coverage takes care of the repair and replacement costs for the damaged property. Here are some things that your insurer can cover:
Damages From Drunk Driving
If an intoxicated customer leaves your premises, operates a motor vehicle, and causes an accident, you might be liable for the damages. Your insurer can cover damages from drunk driving and respond to any lawsuit issues that may follow.
Damages From Intoxicated Behavior
Drunk customers can vandalize neighboring buildings or shops after leaving your establishment. To prevent blowbacks on your business, your policy can address the costs for associated damages up to a particular limit.
Some businesses and individuals accept complete renovation or repairs, but others may sue for more. Lawsuits can offer a better settlement to the injured parties, so you will likely lose more when you go to court. If you are sued, court fees can be quite expensive, so your cover should help you cater to all legal costs.
Some of the legal costs your cover handles include:
- Court Costs
- Lawyer Fees
Third-Party Bodily Injury
Intoxicated customers sometimes make life-threatening decisions for themselves and others. Third-party bodily injuries can cause liability to your business, so you need the right cover to cater to the related costs. Your insurer can pay for medical expenses related to the injury. They can also sort out related legal expenses if the case goes to court.
Here are some aspects of bodily injury that liquor liability insurance can cover:
Injury To Self
Drunk customers may sometimes act inappropriately and, in the process, hurt themselves. Injuries that force the customer to seek medical treatment are actionable, and your business may be liable for them. Liquor liability insurance can cover medical costs, including emergency room charges and ambulance rides.
Sexual Assault and Harassment
Everyone within your establishment is your responsibility, so you must protect each client from the other. Sexual assault and harassment cases can result in damages, but the liquor liability cover can help shield protect you from unfair charges.
For example, if an intoxicated male customer starts acting inappropriately toward other female customers, these women may sue your establishment for sexual harassment. Such cases can be costly and might ruin your business’s reputation, so insurance cover is necessary.
Claims of Assault and Battery
Anyone can sue your business when an intoxicated person engages in a physical altercation within your business premises. Liquor liability insurance covers such actions by handling legal fees and any settlement involved. Your security personnel are also covered under the insurance policy as employees.
Employees Drinking on the Job
Accidents do not only happen from intoxicated customers; sometimes, drunk employees can make poor and costly decisions. Your business may be held liable if such decisions endanger other people’s property or health. Lawyers insist on firing any employees found drunk during work hours and having a strict no-alcohol or drug use at work to avoid such cases. Should the accidents happen, your liquor liability cover can protect your business from any damages.
What Insurance Does Not Cover
Liquor liability insurance does not cover all incidents related to your business. Here are some things that the insurance does not cover:
- Libel and Slander: Damage from slander and libel are also not covered under this type of insurance.
- Sickness From Manufacturing: If your establishment manufactures alcohol and your customers get sick from an error in production or the wrong ingredients, the liquor liability cover will not offer protection. You would need product liability insurance for such damages.
- Business Property Damage: Any items belonging to your business that intoxicated persons might damage are not covered under the liquor liability policy. You need commercial property insurance to address these kinds of damages.
- Underage Drinking: If your establishment serves alcohol to underage persons, the insurance will not cover such claims. Underage drinking is illegal, and such claims can force the closure of your institution.
Get Liquor Liability Insurance for Your Business
Businesses that serve alcohol, like bars, wineries, and liquor stores, have exposure to many risks, including liability for damages that their intoxicated customers cause. Invest in liquor liability insurance to protect your business against these situations. The coverage can meet legal fees or medical, replacement, and repair costs for court cases or damages your drunk customers may cause.