Does your establishment serve or allow consumption of alcohol? Then here’s some information you should know. Keep reading to learn about five important Liquor Liability Coverage facts that every business owner should be aware of!
It’s always wise to secure your business with insurance. As a business owner, it’s your responsibility to protect your finances. But buying the right insurance is not always a straightforward process. There is an excellent chance that you may miss out on specific details and either over-insure or under-insure your business.
Over-insuring your business can cost you a little more, but that only ensures that you have extra protection. And you can correct the mistake when you renew the policy. But, being under-insured is often ignored as you don’t understand its importance until you face an obstacle. And the consequences of being underinsured are usually a lot direr and more expensive than one might anticipate.
One type of insurance that people may have misconceptions about is Liquor Liability Coverage. There are certain clauses in the policy and some rules that many people are unaware of. But once you have this information, you will be better positioned to deal with the obstacles.
So let’s get right to it! Here are five facts that you should know before deciding whether your business requires Liquor Liability Coverage and how much coverage you actually need.
Fact 1: Your responsibility doesn’t end when a customer leaves your establishment.
Many business owners out there don’t understand how far a liquor liability claim extends. They believe that they only need to take care of the customers when attending them within your business premises. But the fact is, once a customer has consumed alcohol at your establishment, you will be liable for all their actions while they are still under the influence of alcohol. So if a customer leaves your establishment and gets into an accident or injures themselves, then you will be liable for claims.
Fact 2: If a customer consumes alcohol at multiple establishments, all of them can be dragged to court.
Many customers like to hop around different places to grab a drink. This usually happens on a Friday evening after a long week of work. So if your establishment is one of the places they visit before they end the drinking for the night and get into an incident, then you will be liable for their actions. It doesn’t matter if they only had half a drink and left as long as they consumed some alcohol while they were in your business premises.
Fact 3: Your Liquor Liability Insurance doesn’t cover legal obligations with regard to underage drinking.
You may be aware that underage drinking is a serious offense in most states around the country. You may not know that you will not get insurance protection to help you settle claims if you face a legal obligation against the said offense. So it’s completely your responsibility if you serve alcohol to a minor. That’s why most businesses don’t allow minors in their premises if they serve alcohol. This also applies to a liquor store business.
Fact 4: You can get discounts on your Liquor Liability Coverage.
There are many practices that you can thoroughly follow to reduce the cost of Liquor Liability Insurance. You can train your employees with the proper knowledge and crisis management techniques. You increase the availability of non-alcohol beverages and encourage your customers to try them. You ensure that designated drives in every party of customers don’t consume alcohol. You suggest alternate modes of transport to intoxicated customers to reduce the risk liability. Following these practices will help you get discounts on your existing Liquor Store Insurance premiums and any additional coverage you may choose to get.
Fact 5: BYOB establishments also require Liquor Insurance.
Many business owners believe they don’t need Liquor Liability Insurance coverage as long as they don’t serve alcohol. But the fact is that even if your business entertains a BYOB concept, you will need it. In such cases, you should look for Host Liquor Liability Insurance.
There are many more details that will be more specific to the kind of business you own. You can always call us to seek assistance for queries regarding them. Based on our knowledge of the business, our insurance experts will guide you in the right direction. You can also contact us to inquire about Liquor Store Insurance costs, premiums, and any other information about your liquor business. Just call us on 855-5EXCEED or write to us at [email protected].
Exceed Insurance has a list of top insurance companies in the USA amongst our clients. When you choose us, you are choosing to get the best Business Insurance in the country along with the best services. Exceed in your career with Exceed Insurance, the best choice for any type of insurance.