Liquor liability insurance is a specific insurance designed for businesses selling or serving alcohol. It helps to protect the establishments from the financial consequences of alcohol-related incidents or claims, and is required in many areas. Here’s how liquor liability insurance protects against lawsuits and claims:
Covers Third-Party Bodily Injury Claims
Liquor liability insurance protects businesses from lawsuits due to injuries caused by intoxicated patrons to other customers. This policy covers medical expenses related to these incidents, such as slips and falls or physical confrontations. It also covers serious injuries like broken bones, concussions, or other trauma that requires hospitalization. Protection under the policy is afforded to claims of any issue that stems from intoxication at your establishment.
Protects Against Property Damage Claims
Liquor liability coverage covers property damage. The policy pays for repairs to damaged vehicles in your parking area. Protection is given to businesses when intoxicated customers damage neighboring properties, such as storefront windows or landscaping. Incidents involving the destruction of other patrons’ personal belongings, such as smartphones or other gear, are covered. Insurance protects you from claims for damages to municipal property, such as street signs or public benches. The protection of bar owners when intoxicated patrons damage expensive equipment like sound systems or televisions.
Defends Against Assault and Battery Claims
Liquor liability policies pay if a customer’s consumption of alcohol leads to physical altercations with other customers. They also cover whether your establishment must intervene in a similar situation. These policies deal with claims involving security personnel using force against disruptive, intoxicated customers. The business covers verbal threats leading to physical confrontations between customers. The coverage also covers claims for injured individuals while employees try to separate fighting customers.
Provides Legal Defense Coverage
A liability insurance will cover attorney fees for defending against alcohol related claims or lawsuits. The policy will cover the cost of expert witnesses who can testify to what proper alcohol service practices are in your defense. This coverage includes court filing fees, deposition costs, and other costs of litigation proceedings. The legal expenses of businesses are protected even when claims are found to be unfounded. The insurance provides representation in regulatory hearings alleging violations of alcohol service laws. Policies also give access to attorneys specializing in dram shop law and alcohol related liability claims.
Covers “Dram Shop” Liability
Dram shop coverage insures businesses exposed to laws that make alcohol servers liable for downstream consequences. The insurance is for claims under statutes imposing strict liability for serving visibly intoxicated persons. Coverage addresses third-party claims of injury arising out of accidents caused by your customers who had consumed alcohol at your establishment. Protection against claims that the server was inadequately trained or that the alcohol service protocols were improper is included in policies. The insurance protects against liability that arises from the allegation that staff did not detect signs of intoxication.
Get Liquor Liability Insurance
Liquor liability insurance might include defense against claims of improper marketing of alcoholic beverages. Some policies offer protection to cover temporary events such as catered functions or festivals. Ask for a complete policy review to see if there are any holes in your existing coverage. Contact a licensed agent today to get your business’s liquor liability protection.
