Liquor liability insurance protects businesses that sell, distribute, or serve alcoholic beverages. Knowing when liquor liability coverage is required can help minimize the impact of financial risks on your business. Here are a few different situations where liquor liability coverage is beneficial:
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Accidents Caused by Intoxicated Customers
If an individual leaves your bar or restaurant after consuming alcohol and gets involved in an accident, you may be held legally liable. Liquor liability coverage may cover legal expenses, medical bills, and other expenses incurred in the process. Lawsuits can be financially devastating without insurance. A liquor liability coverage will allow your business to continue functioning despite an ongoing lawsuit.
People who work in the alcohol industry are directly engaged in the sales and serving of alcohol. This puts them in a position where they may inadvertently serve customers beyond the legal limit or fail to check their identification. If an employee sells alcohol to a customer who is already drunk and the customer causes harm, your business will be held responsible. Alcohol liability insurance caters to claims that may arise from the actions of employees to reduce possible losses. Despite the best staff training, some errors may occur. Adequate coverage confirms that your business will not suffer from significant losses due to staff-related occurrences.
Events and Catering Services
Liquor liability insurance is not limited to bars and restaurants. It also applies to any event that involves serving alcohol, such as weddings, corporate events, and private parties. If your business participates in or offers alcohol catering services, you could be liable for any harm that results from the consumption of alcohol. From a guest getting drunk and causing havoc to an alcohol-related accident, your business may be liable for the damages. Alcohol liability insurance helps eliminate the unpredictability of alcohol-related mishaps. This allows you to concentrate on providing your clients with quality services without worrying about potential lawsuits.
Claims Related to Property Damage
Alcohol liability insurance also pays for property damage. If a customer causes destruction of property due to being under the influence of alcohol, you may be held liable. If you do not have the right insurance, you will be left to foot the bill. The bill may entail catering for repairs, legal charges, and even compensation to the owner of the damaged property. Liquor liability insurance can also cover the costs of damage done within the business premises. Losses that require compensation include cars, household items, and public property. Liquor liability insurance covers a wide range of damage pertaining to alcohol-related damages.
Get Reliable Liquor Liability Insurance Today
Knowing when to purchase alcohol liability insurance can help your business avoid costly losses in the future. Evaluate the risks that your business faces regularly and make sure that you have adequate insurance. Consult with an insurance specialist to make sure that you are adequately covered and meet all the requirements of your state. If you run a bar, nightclub, or restaurant, invest in quality alcohol liability coverage today.
