Don’t Get Burned: Avoiding the High Cost of Skipping Liquor Liability Insurance

We all feel joy in creating a welcoming atmosphere where friends and colleagues can gather for a drink. But for businesses that serve alcohol, the responsibility extends beyond offering a good time. Protecting yourself and your business from unforeseen circumstances is crucial. This is where liquor liability insurance comes into play.

What Is Liquor Liability Insurance?

It is a specialized insurance policy designed to protect businesses that manufacture, sell, or serve alcoholic beverages. It provides financial coverage in the event a customer becomes intoxicated and causes harm to themselves or others, either on or off your premises.

3 Potential Consequences of Not Having Liquor Liability Insurance

Skipping liquor liability insurance can expose your business to significant financial risks. Here are just a few potential consequences:

  1. You Could Be Held Liable for Any Damages (On or Off Your Premises): Imagine a patron overconsumes alcohol at your establishment and later gets into a car accident, injuring themselves or others. Even if the accident occurs away from your bar or restaurant, under dram shop laws (laws that hold establishments liable for serving alcohol to intoxicated patrons), you could be held responsible for the damages. The insurance coverage would cover these legal costs, including medical expenses, lost wages, and property damage.
  2. You May Not Be Protected in Instances of Assault and Battery: If an intoxicated patron gets into a fight and injures someone, your business could be liable for the resulting medical bills and legal fees. Here, this insurance coverage can help cover these costs, preventing you from having to shoulder the financial burden yourself.
  3. You May Become the Target of a Frivolous Lawsuit: Unfortunately, lawsuits are a reality in today’s world. Even if you haven’t served alcohol to an obviously intoxicated person, you could still be sued. The insurance can provide legal defense coverage, protecting your business from the financial strain of a lawsuit, regardless of its merit.

Who Needs a Liquor Liability Insurance Policy?

This insurance is essential for any business that serves alcohol, including:

  • Bars and nightclubs
  • Restaurants with a liquor license
  • Breweries and wineries
  • Liquor stores
  • Event venues that serve alcohol

Liquor Liability Insurance vs. Host Liquor Liability Insurance

It’s important to distinguish between liquor liability insurance and host liquor liability insurance. Host liquor liability, often included in a general liability policy, provides limited coverage for occasional events where alcohol is served, such as a company holiday party. Liquor liability insurance, on the other hand, offers comprehensive protection for businesses that regularly sell or serve alcohol.

Protect Your Business and Your Future with Our Comprehensive Insurance Solutions

At RMS Insurance Brokerage, LLC, we can help you navigate the complexities of liquor liability insurance and find the right policy to fit your specific needs. Don’t risk jeopardizing your business’s financial stability by going without this vital coverage. Contact us today to create a fun atmosphere for your customers. Call us at 516-742-8585 to get started.