4 Signs That You Need Liquor Liability Insurance
Do you own or operate a business and want to find out more about liquor liability insurance? Thinking about starting a beverage retail business and aren’t sure of your legal insurance requirements?
If you’re looking for guidance regarding whether or not your business needs to have insurance coverage for alcohol disbursement, the following are four signs that you need to carry liquor liability insurance.
- You own or operate a business that sells or serves alcohol
If you own or operate an entity that facilitates the distribution of alcohol such as a bar, a restaurant, a brewery or a supermarket, it is important to have liquor liability insurance in place before you open your doors for business.
Having this coverage is critical because it protects your business in the event of a patron filing a claim against you for a liquor-influenced incident that leads to damages.
If such an event occurs, the insurance will cover the cost of legal fees and any judgement amounts that result from the claim.
- Your state requires you to carry liquor liability insurance
Many states in the US require business owners who distribute and serve alcohol to carry liquor liability insurance.
If an incident were to happen and you do not have liquor liability insurance in place, it could lead to your business paying hefty fines, higher insurance rates and in a worst case scenario, losing it’s liquor license altogether.
In some cases, even if you do not actually serve or manufacture alcohol, you still may be required to have liquor liability insurance. This is usually true if you provide a space where alcohol is consumed, such as a location that you rent out for special gatherings and events.
- Your business only carries general liability insurance
Having general liability insurance is an excellent risk management tool for any business owner. However, general liability coverage won’t help at all if you’re hit with a lawsuit that stems from alcohol consumption directly connected to your entity.
While general liability insurance covers incidents such as a slip or fall and damage to someone else’s personal property, this type of insurance does not cover alcohol related incidents.
It is for this reason that businesses are required to get additional coverage that is specific to alcohol consumption and its potential negative effects.
- You have employees who dispense alcohol
As a business owner, you try your best to do everything right and run your business properly. However, when you have employees, you can’t always be there to make sure they are as vigilant as you.
If someone who works for you serves alcohol to a minor or doesn’t cut a patron off once they’ve had enough to drink, you can be held liable for any incident that results from their negligence.