Starting a bar or restaurant that serves alcohol might seem like a fun idea on the surface. It can certainly be a profitable venture if you take the right precautions. However, there are risks of litigation you must consider. Use this liquor liability guide to minimize liquor liabilities and get the right insurance.
What Step Can Bar Owners Take to Minimize Risks?
Owning a venue where liquor is served increases the risks of patrons getting injured at your establishment. They might get too drunk and lose their balance, or they might throw a punch at another patron. Someone might get sick and cause others to get sick. Intoxication can also lead to property damage. In any of these instances, your business will be protected if you have the appropriate liability insurance in place.
As a bar owner, you can minimize risks by hiring security to enforce policies such as checking IDs to verify age. You should also make sure reckless people are escorted away safely. Another way to minimize risks is only to serve hard liquor on certain nights of the week. Additionally, have a contingency plan in place to take care of emergencies, especially while hosting events.
What Makes Liquor Liability Insurance Important?
General liability insurance only covers so much. It’s designed as basic insurance protection across multiple industries. Each industry has its own risks, which may not be covered in general plans. So businesses inevitably need to customize their insurance plans to include special coverage for their industry or niche. For bars, you need liquor liability coverage as an extension to a basic plan.
One of the most important reasons to get liquor liability insurance is to have a financial safety net in place to pay for lawsuits or fines. A bartender and bar owner can be held liable for accidents when the establishment serves alcohol to someone who has clearly had too many drinks.
Which Businesses Typically Require Liquor Liability Insurance?
Find out if your state requires venues that serve alcohol to carry liquor liability insurance. This coverage is usually required by a bank that gives loans to such businesses. For the most part, liquor liability insurance is necessary for a company that serves alcohol because of the added protection, particularly for facility owners. Catering services or organizations that run fundraisers that serve alcoholic beverages should also consider this insurance.
How Can RMS Insurance Help You?
RMS is here to help your start-up minimize liquor liabilities by directing you toward the right insurance. Tell us about your business plans, and we’ll give you insurance options that cover your risks. We offer various types of coverage for restaurants and bars such as:
- General Liability
- Liquor Liability
- Products and Completed Operations
- Assault and Battery
- Excess Liability
This liquor liability guide gives you an overview of what you need to minimize liquor liability. The key is to add liquor liability insurance to your general liability plan. You may also need other add-ons, depending on the neighborhood and the type of establishment you run. Contact us at RMS Insurance Brokerage, LLC to learn more about getting the appropriate coverage you need for your business.