A Complete Guide To Surety Bond Insurance

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In this blog we will cover all the benefits of Surety Bond Insurance and why you should definitely invest in it. It’s better to be safe than sorry when you’re in the business of selling alcohol.

Running a liquor store can be a risky business. You are always at risk of claims and liabilities based on the kind of fragile products that you sell and the type of customers you deal with. And while you may still manage to run your business efficiently and with profit, most state governments would want more evidence of stability from your business.

That’s the reason why almost every state in the USA demands Surety Bond Insurance from liquor store owners. It acts as evidence of collateral should the business fail due to unfortunate circumstances. But that is not the only reason you should have Surety Bond Insurance.


How Surety Bond Insurance will cover losses in your liquor store?


It covers more than just your liquor store insurance

Surety Bond Insurance coverage is not limited to your liquor store business. It also covers transportation, manufacturing, storage, and sale of alcohol. These alcohol bonds are put in place to ensure that the company complies with the rules and regulations for the manufacturing and distribution of alcohol as per state laws.

It acts as evidence of rightful practices

Customers who purchase alcohol find it reaffirming when they see the Surety Bond Insurance certificate displayed in the liquor store. This acts as proof that the liquor store or company is following all the guidelines set by the state for the safe distribution of alcohol.

That means that the products sold at the liquor store are authentic and safe to consume. This can be one of the biggest motivators for customers to choose your store over another that doesn’t have the required certificates.

It opens doors to bigger opportunities

It’s easier to attract companies or customers looking to make bulk orders when they know that you follow all the ethical practices set by the government while distributing alcohol.

So when a festive season, anniversary, or any other celebration comes around, they would look at stores that they can rely on to make their purchases. And your store will be their preferred choice if you have Surety Bond Insurance on display.

It reduces competition

Even if there are strict guidelines for alcohol sales, many retailers still sell it illegally without the right certificates. However, the majority of potential customers would not prefer buying alcohol from such stores.

Instead, they would prefer a store that follows all the regulations and abides by the laws set by the government. So getting Surety Bond Insurance for your business will reduce local competition and make you the preferred alcohol retailer in your area of business.

It protects you against claims

A liquor bond is like a financial security bond that covers the financial liabilities you may face in your business. Along with your alcohol license, alcohol permit, and Liquor Store Insurance coverage, an insurance bond protects you from unnecessary claims and liabilities that may arise due to the unlawful sale of alcohol.

So as long as the payment of taxes is consistent and all the other practices are within the boundaries of the regulations, then you won’t have to worry about any liabilities.


Beyond Surety Bond Insurance

It’s just as important to get insurance for your liquor store as to have a liquor license, liquor and wine bonds, and also pay the alcohol tax by state. Besides, Surety Bond Insurance is one of the Liquor Store Insurance premiums. So you can get it all in a package from your business insurance provider.

It will surely be a financially wise decision to manage the Liquor Store Insurance cost better. If you want to know more, we have a dedicated blog on How to reduce your Liquor liability insurance rates?. Do check it out!

You can find the best Liquor Store Insurance that perfectly fits your needs at Exceed Insurance. Just key in your needs and specifics, and we will recommend the best and cheapest insurance coverages for liquor stores. If you have any further queries, then you can contact us at 855-539-2333 or write to us at We will get back to you. 

Published: November 6, 2023

Last updated: February 15, 2024

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