Opening a business that serves liquor involves risk but is usually rewarding. Because so many issues can occur when alcohol is involved, business owners must protect themselves and their assets from those risks. Having liquor liability insurance is critical for protection.
What Is Liquor Liability Insurance?
Liquor liability insurance covers a business owner should they serve alcohol to a visibly impaired patron who causes injuries to others. This insurance is used for insuring your bar. It only takes a single mistake to ruin a person’s livelihood. Liquor liability insurance covers the following for policyholders.
- Third-party bodily injuries
- Third-party property damage
- Additional claims, such as those revolving around assault and battery
- Legal fees
5 Reasons an Establishment Needs Liquor Liability Insurance
Businesses that are taking risks and going without liability insurance can face serious consequences. The following offers information on five reasons businesses need this insurance protection to cover themselves in case of accidents related to serving alcohol.
- It only takes a single mistake to bankrupt a business and lose years of hard work. Patrons who have had too much to drink could get in a fight and hurt someone else. Drunk individuals could also get behind the wheel and cause serious injuries or even death.
- The general liability policy of the property owner will not cover liquor liability issues. Many business owners mistakenly believe their general liability policy will cover them. Often, they discover they are wrong after someone causes serious damage.
- Many people do not realize fighting a liquor liability claim is very expensive. The average is around $150,000 and can go up much higher when a death is involved. With insurance protection, all costs are covered by the insurance policy.
- The management of a liquor liability claim is stressful and time-consuming for business owners. Without insurance protection, bar and restaurant owners could spend days or even weeks working on defending their cases, which is time spent away from their businesses.
- Anyone can make a mistake. No matter how trained employees become, errors can happen. Busy nights working in a bar can lead to employees overlooking signs they normally would notice. With protection in place, bar owners will not have to worry if one of their employees causes a liquor liability concern.
The expense of purchasing liquor liability insurance is cost-effective for those who do not want to risk their businesses. It only takes one liability claim to bankrupt a business owner and causes them to lose everything they own.
Those business owners who are taking risks without insurance coverage need to stop. Purchasing ample liquor liability coverage will give business owners peace of mind knowing they are protected should a liability issue arise due to the serving of alcohol.
Work With Professionals to Purchase the Best Coverage
Business owners who do not have liquor liability insurance coverage are taking a big risk. The reasons above should prompt any business owner to take action and seek the insurance coverage they need.
Sitting down with an insurance agent will allow a business owner to learn about their options for liquor liability coverage. The agent will go over the needs of the establishment owner and help them determine the level of coverage their business requires. Those business owners without coverage need to seek an insurance policy right away to protect their assets against liability claims.