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.
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