When you serve liquor to customers, you expose yourself to risk. Most customers don’t cause problems, but you need to protect your business against certain situations. When patrons become intoxicated, they can do damage in a number of ways. They may start fights, damage property or hurt other people. If intoxicated people drive a car, there is potential for serious damage. They could cause a accident that can result in grave injuries or even death.
As an owner of a restaurant, bar or tavern, you need the appropriate liquor liability insurance to protect yourself and your business. Many owners are aware that they need general liability insurance, but your need for protection doesn’t end there. If you serve alcohol, you need liquor liability insurance to protect against alcohol-related problems.
It’s important to find an insurance broker that can help you evaluate your insurance needs. Good brokers understand state and local laws. They can explain what sorts of liability situations your business is exposed to and what kinds of insurance are most appropriate. All businesses need general liability insurance to protect them against claims and lawsuits. Establishments that manufacture and serve alcohol have additional protection needs. They need liquor liability insurance to protect them in certain situations. .
Liquor liability insurance is not typically part of general liability insurance packages. Many brokers sell it as an add-on to general liability insurance. The broker may also design a package insurance deal that includes liquor liability insurance. The liquor liability policy should protect your business against a variety of liquor-related claims, such as assault and battery, emotional damage and defense costs. Your insurance broker should advice you against seeking limited liability insurance. It’s important to remember that insurance will not protect you if your business violates law. If you sell minors alcohol or violate other liquor laws, you won’t be eligible for insurance protection.
Your insurance broker may have ideas on how you can reduce your liquor liability insurance and general liability insurance premiums. Some companies offer safety training courses and programs. If you and your employees attend, you may be eligible for reduced rates. If your business has no history of claims, your premiums will be lower as well.