As a business that serves alcohol, liquor liability insurance is essential. This type of policy protects you and your business in the unfortunate event that a customer causes damage or injury after being served alcohol by your business.

When is your business held responsible for alcohol-related incidents?

Unfair as it may seem, you can be held responsible if you sell alcohol to a customer who then causes damage or injury to themselves, others, or property while intoxicated. Even if you win in any court case, you’ll still face legal costs defending a claim. That’s a big problem, as many business policies specifically exclude any claim resulting from an alcohol-related incident.

Liability risks for businesses that serve alcohol.

To make things worse, most states have what are known as “dram shop” laws that create strict liability for businesses that serve alcohol to somebody who is already intoxicated. That means you can be held responsible for their subsequent actions without any need for proof you acted recklessly.

Additional coverage options to consider.

Liquor liability insurance covers against such cases, though you’ll need to check precisely what a policy covers. Look for assault and battery coverage, which covers claims against your staff—something that can easily arise if they are escorting a drunk patron off the premises. It’s also definitely worth getting coverage against litigation costs to cover “gray area” cases where a court awards no damages but each side pays its own legal fees.

Find out more about liquor liability insurance by contacting us today.