When operating a bar, you face inherent risks due to the sale and serving of alcohol to patrons. Some risks may include assault or damaged property, DUIs, or slipping and falling, which may result in a lawsuit. Here are some things you need to know about liquor liability insurance:
Why Bars Need It
In many states, dram shop laws hold bars liable if they serve excessive alcohol to someone who is visibly intoxicated and that person causes harm. This may lead to a lawsuit if an excessively drunk individual gets into a fight with others and destroys or damages someone else’s property. When you purchase liquor liability insurance, you protect your business’s finances from legal costs and settlements. You can also use the payment to repair and replace some items damaged during an altercation or to purchase more inventory or equipment.
What It Covers
Liquor liability protection covers third-party injuries that occur when an intoxicated person injures someone in your bar. This could happen accidentally or from an altercation. The coverage may help pay for the injured party’s medical expenses and lost wages while they recover. If a patron damages another customer’s vehicle or other properties, this coverage covers the repair and replacement expenses. Since lawsuits can be part of this process, insurance may help you pay legal fees and other court expenses. To know what your insurance covers, you can talk to a qualified agent to explain what’s included and customize your policy to your establishment’s needs.
How To Reduce Liquor Liability Claims
To shield your business from legal and financial risks, train your staff to identify excessively intoxicated customers and avoid serving more alcohol, especially as they come into your establishment. As a bar owner, encourage a patron to use ride-sharing services if you notice they won’t be able to drive. You can also utilize security personnel to manage intoxicated guests before fights arise, preventing more legal issues. To prevent people from drinking too much alcohol and causing havoc, your bar can limit drinks per order. If there are gaps in your liquor liability coverage, an agent can check them to protect your bar from claims.
How To Choose the Right Policy
When choosing your policy, factor in the alcohol volume you serve because more customers mean more risks. You may also check if the coverage pays for staff-related incidents such as overserving a customer. If you have trouble finding sufficient insurance, an agent can help you find one that suits your bar size and risk level. This professional also helps businesses adjust their coverage as their operations grow and risks change. Since insurers have different coverage limits and premiums, getting quotes from them is beneficial before settling for one.
Buy Reliable Liquor Liability Insurance
If you own a bar, buying sufficient insurance is one of the ways to prevent financial losses from different incidents. An experienced insurance company can explain its different packages and help you choose the right policy. You can also get workers comp insurance through a provider to protect your employees from loss of wages due to injury. Call a trusted insurer today to get a quote to buy suitable liquor liability coverage.
