America’s attitude of nonexistent personal responsibility is nowhere more apparent than in the area of alcohol sales. Businesses that serve alcohol are always vulnerable to frivolous lawsuits brought on by individuals and organizations who do not believe that a person is responsible for their own actions. If you have a business that serves alcohol, a liquor insurance policy can save you tons of money and perhaps save your business should you fall victim to one of these lawsuits.
Liquor liability insurance is a type of commercial insurance specifically tailored to businesses that serve or sell alcohol. The insurance protects the business from lawsuits brought on as a result of a liquor related incident. Any business that has anything to do with the sale of alcohol, including distributors, should absolutely have a liquor liability policy.
Basic commercial policies usually do not cover specific alcohol related matters. It’s necessary to have a liquor liability clause added to the policy. This will cost a little extra, but will easily pay for itself many times over should you be forced to pay a lawsuit claim.
Like all insurance types, companies that offer alcohol insurance are tightening the restrictions on claim payments. The rising number of lawsuits is also taking its toll on the insurance companies. When getting a policy, you must ensure that the policy covers certain situations and has a few necessary provisions.
Where there is liquor, there are often fights. Therefore the policy must contain assault and battery coverage. Should a fight occur in your establishment as a result of alcohol consumption, the clause will cover claims against you.
The policy should also cover the costs of a defense attorney. This can often be a greater expense in litigation than the settlement. It would seem common sense that the policy cover attorney’s fees, but this is not always the case automatically.
All employees should be covered by the policy. Since they will likely be involved in anything that happens in your establishment, you must cover them the same as you cover patrons.
Many lawsuits use mental damages as a catch all when specific injuries can’t be proven. The policy needs to cover these types of rewards also.
You can often lower the premiums by implementing specific policies in your establishment. Safety regulations including not serving intoxicate patrons and employee training programs are a couple of examples. Maintaining a safe environment will also lead to lower premiums.
There are two type of liquor liability. Host liability covers things involving guests at the establishment. You are considered the host. Liquor legal liability covers the owner should action be taken against him of or the establishment. Both types of coverage are essential for a complete policy.
No establishment that serves alcohol is safe from legal action as a result of alcohol related problems. Whether a private club or a public establishment, such as a restaurant or even a sports park, you absolutely require liquor liability insurance these days. It’s sad that people are so quick to find someone else to blame for their drunken actions, but this has become the standard in America. Make sure that one drunken guest that can’t control his liquor will not jeopardize your entire business.