In case a brawl breaks out inside your bar, it’s not just the aggressor who’s at fault. You could be held partly liable because you supplied the liquor. If the victim of the violence sues your bar, you may have to pay for their medical costs, pain and suffering, and other associated expenses. Having liquor liability insurance protects you from such costs. Read on to learn more about why this coverage is vital for businesses that sell alcohol.
Understanding Liquor Liability Insurance
A liquor liability policy covers businesses that sell, serve, or distribute alcohol. It doesn’t matter who started the fight in your bar—you may be held liable for the patron’s injuries or damages. The injured patron can sue you instead of the attacker. You should get this protection right away to cover these potentially high costs.
Why You May Need Liquor Liability for Your Bar
If you own a bar or nightclub, there are many scenarios in which liquor liability could protect you. Examples include:
- After getting drunk in your bar, a patron drives home and kills someone in a road accident. The victim’s family demands compensation for the loss and files a criminal and civil case against your bar. You could use liability protection in this scenario.
- Depending on your business location, you may need this coverage to get your liquor license.
- If you sell alcohol, you cannot rely on a host liquor liability policy to cover drunken assault and battery at your bar.
- While drunk, one of your customers’ assaults and injures another patron. You’re liable for the victim’s medical costs.
- The aggressor is injured too and sues your bar. If you lose in court, your liquor insurance can cover the judgment.
- Patrons at your bar start a drunken brawl, breaking properties belonging to other patrons or innocent bystanders at the parking lot. These third parties may sue you for property damage.
What Protections Does Liquor Liability Coverage Offer?
Look for the following coverage options when you’re shopping for a liquor liability policy:
- Assault and battery to cover fights involving drunken patrons.
- Mental anguish as a victim may claim damages for emotional trauma due to the ordeal at your bar.
- Legal defense coverage if you’re sued in court for bodily injury.
- Employee coverage for claims related to the conduct, such as aggression, of an intoxicated employee.
- Property damage if a patron’s property is damaged in mayhem due to intoxication.
- Shop around for discounts to lower your insurance costs. Some carriers may offer you discounts based on a good claims history or adequate bar security measures.
Importance of Liquor Liability Insurance
Peace of mind is the greatest benefit you can get from having insurance protection. You can run your bar without worrying about what might happen if a patron is injured by another on your premises. It can pay for:
- The victim’s medical costs
- Defense lawyer fees
- Out-of-court settlements
When to Shop for Liquor Liability Insurance
If you operate a bar without liquor liability coverage, consider getting the coverage now. The behavior of drunken customers is difficult to predict, and you don’t want to be caught off guard. Talk to your insurance agent to help you address your specific overage needs.
These are the reasons why it’s vital to have liquor liability coverage for your bar. It’ll protect you from costly injury claims. If you need help selecting the right insurance program, reach out to the experts at RMS Insurance Brokerage, LLC today. We’re happy to share detailed insurance insights for your specialty.