If you are planning to serve alcohol at your next event, you’ve likely brainstormed potential risks. Perhaps you are unsure whether you need insurance to serve alcohol at your event. Many insurance companies do offer special event insurance to protect business owners in the event that a liability dispute arises. This type of coverage protects you if someone is injured in an alcohol-related incident or if property damage occurs. Here’s a closer look.
Liquor Liability Insurance
Many establishments will prohibit you from hosting an event there unless you have obtained insurance. Liquor liability insurance is a popular option. The policy covers you when you sell alcohol at different events. Short-term and long-term coverage is available. Short-term coverage is recommended if you are only serving alcohol at an upcoming event. Long-term coverage is recommended if you own a bar and you’re serving alcohol on a regular basis. Perhaps a fight breaks out at your event, or someone has too many drinks at your event and damages property or gets into a car accident. Liquor liability insurance will handle all of the necessary costs associated with the liability dispute.
Liquor liability insurance gives you a layer of protection while you’re serving alcohol at your event. In the rare case that you are allowed to host an event without insurance, you could be on the hook for thousands of dollars’ worth of damages if an incident occurs. Covering potential repair costs, medical bills, and legal fees could damage your finances and put you out of business. Liquor liability insurance could also protect you if an incident related to underage drinking occurs at the event. You may not be held legally responsible if you can prove that the minor had a realistic fake ID.
Common Events Where Liquor Liability Insurance Is Mandatory
Weddings
Weddings are special occasions. Alcohol is a common necessity at these events, where loved ones gather to celebrate a moment that should last a lifetime. However, there are risks involved with serving alcohol at a wedding. Perhaps a guest gets intoxicated and hits someone or crashes their car while leaving. The impacted party may hold you responsible for serving too much alcohol. Your liquor liability insurance steps in to cover you throughout the legal process.
Work Gathering
Work gatherings are considered more professional than social gatherings. However, alcohol may be served to help lighten the mood. Unfortunately, that could lead to serious problems. If there is tension between some of your employees, alcohol may cause things to get worse. If an alcohol-related fight occurs at your corporate event, you will likely be held liable for the damages. It’s possible that one of the injured parties may sue you. Special event insurance will cover your legal fees, as well as any settlement or medical compensation costs.
Restaurants
If you own a restaurant, purchasing liquor liability insurance is important. You’re likely serving alcohol on a daily basis. There are potential liability risks involved both inside and outside of the premises. The insurance protects your business if intoxicated patrons start causing trouble.
Consult With RMS Insurance Brokerage, LLC.
Generally, you’ll need insurance to serve alcohol at any event that you plan to host. It’s a wise investment, as the policy could prevent you from potentially being responsible for millions of dollars’ worth of damages if something goes wrong. Contact our professionals here at RMS Insurance Brokerage, LLC, if you have any questions.