If you own a bar, restaurant, tavern or another establishment that serves liquor to patrons, it’s imperative that you carry the appropriate insurance. There are a variety of situations that could lead to a lawsuit which could be financially devastating to your business. One of the most proactive steps you can take is to find a good insurance broker. A good broker will help you understand your business’ liability when it comes to incidents. He or she will help you build a liquor liability insurance package that will provide your business with thorough protection.
Your broker should review the importance of liquor liability insurance with you. This insurance is a necessary piece of protection for any business that serves alcohol. Your broker may recommend that you purchase liquor liability insurance as part of an insurance policy. In other cases, the broker may advise you to purchase a separate policy.
It is essential that your broker thoroughly understands Arizona laws when it comes to liquor liability situations. The most significant risk situations are when an intoxicated person is involved in a car accident. If your establishment served the person liquor, you could be liable for damages incurred in the accident. There is also risk to your business if an intoxicated person assaults another person on your premises. Comprehensive liquor liability insurance will protect your company in these situations. Without it, your business could struggle or end up in a bankruptcy situation.
It’s critical that your insurance broker understands how to write appropriate insurance policies for Arizona businesses. These policies can be challenging to write and an inexperienced or uniformed broker may not provide you with comprehensive protection. There are several court cases that establish precedents when it comes to business’ liability when serving liquor. A qualified broker will understand these cases and ensure that your policies protect against these situations.
A good insurance broker will help you evaluate your insurance needs over time. If your business grows or changes, your broker can reassess your insurance needs to make sure you are properly protected. For example, if the proportion of liquor sales to food sales in your establishment changes, you may need to adjust your liquor liability insurance coverage.
What is Liquor Liability Insurance? Understand the Basics
When it comes to understanding liquor liability insurance, it is important to understand the purpose of this business insurance. Under Arizona law, an establishment, such as a bar or restaurant, can be held liable in the event that an intoxicated person is involved in an automobile accident. If someone is seriously injured or killed in the accident, the business could be facing a devastating lawsuit. The laws also apply to assault situations. If the establishment does not control a drunken patron and the person causes bodily harm to other patrons, the establishment could be held liable. These are all important reasons to ensure that your company carries the appropriate liquor liability insurance. Arizona law makes establishments particularly vulnerable to certain kinds of lawsuits so it is essential to protect your business with the proper kind of business insurance.
In Arizona, any company that is licensed to sell liquor is liable in the case of an accident. This includes bars, pubs and some fraternal organizations. Basic business insurance will not cover the liability issues involved in serving liquor. There have been court cases that establish the precedent that companies could be liable if they sell liquor to a person when they should reasonably suspect that the patron is intoxicated. In some cases, bars and restaurants have been sued and have faced significant civil penalties. The establishment can even be sued if the person was served only one drink and became intoxicated elsewhere.
A good insurance broker will help you understand the multitude of issues that your establishment may face. It’s important to hire a broker that has a thorough understanding of Arizona law, as it differs from other state liquor regulations. The broker will evaluate the proportion of liquor sales in relation to other types of sales to help construct the best liquor liability insurance policy for your business. Some insurance companies will require a regular review of sales receipts to ensure that the business is complying with policy conditions. Your insurance broker may recommend an insurance package that includes liquor liability insurance or steer you towards a separate policy, depending on your circumstances.
The Benefits of Commercial Business Insurance
Any business that serves, sells, manufactures or is involved in the purchase of alcohol must have liquor liability insurance. This includes bars, restaurants, taverns, nightclubs and other organizations that serve patrons alcohol. Liquor liability insurance is important because selling liquor exposes businesses to many possible liability situations. If an intoxicated person is involved in an accident, the establishment may be named in a lawsuit. The establishment can be liable for the injuries caused by the intoxicated person. Some insurance companies sell liquor insurance as part of a package, but other companies require consumers to purchase liquor liability insurance separately. This difference is usually based on the ratio of total liquor sales to total sales.
Many states have laws that hold social hosts liable for lawsuits if they serve alcohol to an intoxicated person that ultimately causes an accident. Arizona limits the amount of exposure that most social hosts have to lawsuits. However, if the social host is licensed to serve alcohol, such as a bar or a restaurant, there is potential for a serious lawsuit if an intoxicated person is involved in an accident. In fact, the establishment could be liable for serving a single drink to a patron even if another establishment ultimately over-served the person.
You can minimize the risk of lawsuits and incidents by taking some precautionary steps. First, you can hire and train bartenders who can monitor the intake of alcohol. You should also have regular training programs to ensure that all staff members are aware of the importance of serving alcohol responsibly. However, it is still critical to have appropriate liquor liability insurance to protect your business.
It’s important to find an insurance broker that fully understands the liability issues in your state so that you can create a policy that will protect your business in the case of an incident. In many cases, the broker will recommend a policy that includes legal defense fees, assault and battery protection and regulations about employee drinking. Because liquor liability insurance policies are more complex in Arizona than in many other states, it’s especially important to find an insurance broker who fully understands the rules and regulations. This will protect your business in the event of an incident.
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