What Can Prevent You from Getting a Liquor License?

To operate a liquor business legally in the U.S., you need to meet all the necessary licensure requirements. Of course, these requirements vary across industries depending on the nature of operations involved, which means that some industries have more stringent licensing requirements than others. For instance, selling regulated products such as liquor requires a thorough vetting process before you get a license. Despite the rigorous vetting process, you can lose your liquor license either temporarily or permanently for flouting the set liquor license rules.

Liquor Liability Insurance

The National Center for Biotechnology Information (NCBI) has linked excessive consumption of alcohol to aggressive behavior. This means that in a typical liquor shop, violent actions such as fighting and damaging property are more likely to occur. While some cases can be solved by a simple intervention between the aggressive parties, others may escalate into police cases. As the business owner, this puts your business finances at risk since you will most likely be held responsible for the ensuing damages. That is why you require liquor liability insurance coverage for your liquor business. According to the Insurance Information Institute (III), this policy covers the damages and injuries that may result when your customer gets drunk and becomes violent.

What Can Prevent You from Getting a Liquor License?

A criminal record is one of the most common reasons for liquor license denial in the U.S. More specifically, convictions for crimes such as soliciting, prostitution, violating any of the federal drug laws, and assault can be a setback in your license application. Therefore, ensure you have a clean record and acquire the necessary documentation if you intend to apply for a liquor license.

Common Reasons for Losing Liquor License

When selling alcohol or any other regulated product, you should adhere to the rules stipulated by the regulatory authorities lest you lose your license. For instance, about 27 eateries in New York recently lost their liquor licenses for flouting the set COVID-19 safety regulations, as reported by Forbes Media. Other reasons for liquor license suspension include:

  •  Serving minors – Federal laws only permit selling alcoholic beverages to those that are 21 years of age and above. If possible, always check the identification cards of customers who look too young. Take note that some underage customers can use fake IDs.
  •  Employees getting drunk while working – When serving customers, your employees should always stay sober by avoiding drinking.
  •  Overserving customers – Excess drinking can have serious health implications and cause aggression and impaired judgment. You should not overserve customers. You can tell a customer has had enough if they have slurred speech, are nauseous, or are unresponsive.
  •  Drinking in unauthorized areas – While drinking is allowed in your liquor shop, your clients should avoid drinking in the surrounding areas such as the sidewalks and parking areas.
  •  Third-party liabilities – These arise when your customer causes an injury or property damage due to alcohol intoxication. For instance, if a drunk driver hits a pedestrian, you can be held liable if he/she drank at your shop.
  •  Aggressive behavior – Although you are dealing with drunk customers, they should remain orderly because any misconduct can jeopardize your liquor license.

To avoid losing your liquor license, adhere to the set liquor license rules. For extra peace of mind, carry the right insurance coverage for your liquor business. At RMS Insurance, our expertly crafted policies are written specifically for the hospitality industry. We offer custom-tailored insurance solutions to meet any venue’s specific needs. For more information, contact our experts today at (888) 359-8390.

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