Should You Add Liquor Liability Insurance for Your Next Non-profit Event?

Leaders of nonprofit organizations are often unaware of the potential risks they are exposed to. It’s recommended that all nonprofit organizations have liability coverage for protection against property damage, bodily injuries, and allegations of slander or libel. Commercial property insurance is another common form of coverage that nonprofit organizations rely on.

Commercial property insurance covers your business if any of your equipment is stolen or vandalized. However, one often overlooked insurance policy to add is liquor liability insurance. Here’s a closer look at why your nonprofit organization should consider adding this coverage.

Think of Your Next Event

Company events are a great way to boost morale by bringing everyone together. Serving food and refreshments is a great way to enhance the festivities. Alcohol is a common amenity at many nonprofit events. Perhaps you don’t serve it at regular events and prefer to save it for special occasions. Regardless of when you opt to serve alcohol, it’s recommended that you consider adding liquor liability insurance if you serve it more than once a year. Perhaps you don’t officially serve alcohol at your events, but allow people to bring their own drinks. This is a common occurrence at small parties and dinners. Adding the extra insurance is still recommended to protect you if an issue arises.

Why Is Liquor Liability Insurance Important?

Liquor liability insurance covers your nonprofit organization by handling potential legal fees and settlements related to different issues. The coverage is generally affordable for most nonprofit organizations because they use it on a limited basis. Liquor liability insurance is a worthwhile investment even if you only have two big events every year.

Benefits of Obtaining Coverage

Mixing alcohol with any environment makes things unpredictable. There are stories every year regarding alcohol-related incidents. Your organization will be held responsible if someone gets intoxicated at the event and injures another guest. Maybe a guest gets into an auto accident on their way home from the event because they are intoxicated. Maybe an intoxicated guest punches a hole in a wall or destroys property. These are all situations where your company will be held liable because you served alcohol at the event. Liquor liability insurance covers you in these situations.

The Legal Process Can Be Complicated

If your nonprofit organization is found liable in a lawsuit based on alcohol-influenced damages at your event, you’ll have to deal with potential legal complications. If substantial damage was caused as a result of serving alcohol, the consequences could be extremely damaging. Even if you aren’t found guilty, going through the legal process could drain your organization’s finances and damage your nonprofit organization’s reputation. It may be difficult to recover from even a minor liability suit. That’s why obtaining that extra layer of protection in the form of liquor liability insurance is so important.

Consult with RMS Insurance Brokerage, LLC

Expensive litigation disputes have destroyed many nonprofit organizations. If you have any questions regarding liquor liability insurance coverage, contact the team here at RMS Insurance Brokerage, LLC. We will help you find flexible coverage that aligns with your needs.