Selling liquor is a profitable, yet risky endeavor. Though you can make money from the legal sale of liquor, the industry is tightly regulated in Arizona. Most liquor sales and service operations come with strict licensing requirements.
Getting the right amount of liability insurance to meet these requirements is essential. Should the liquor you sell cause harm to a customer, this coverage will help protect you against the financial damages you'd otherwise be responsible for covering out-of-pocket.
Insurance Regulations In Arizona
It is easy to see why Arizona regulates the sale of liquor. According to the Arizona Governor's Office of Highway Safety, there were 29,250 DUI arrests in the state in 2014. This included 1,461 arrests of people under 21 years old. The average BAC at arrest was 0.152%, nearly twice the legal limit of 0.08%.
Arizona law governs how, when, and who can sell alcohol. If you plan to operate a liquor store in Arizona, you must take responsibility for the safety of your customers.
Whenever someone becomes intoxicated, they pose a risk to themselves and others. If you sell alcohol to someone who then causes injury to yourself or others as a result of what you've sold them, your store might be liable for the damage.
Most liquor sellers in Arizona, including liquor stores, must carry liquor liability insurance. Yet, standard business insurance generally doesn't include this coverage. This is why it's important to consult with your insurance agent, who can design a policy specific to the needs of the store.
Why You Need Liquor Liability Insurance
Liquor liability insurance can help you when the products you sell harm someone else.
For example, let's say you sell liquor to someone who later gets into a drunk driving crash and injures someone. The injured party might sue your business. They might consider your liquor store responsible if the alcohol you sold contributed to the accident.
Liquor liability insurance can help you compensate damaged parties. It can also help you manage legal costs associated with the case.
However, remember that liquor liability insurance might contain exclusions. For example, some policies might only cover accidents if they occur on your property. This is a somewhat narrow scope, as an alcohol-related accident could occur anywhere.
Therefore, talk to your agent about how to best protect your liquor store, its assets, and yourself from risks. Your agent will understand that liquor stores distribute products over a wide area. They will take this into account when create a policy.
We've got you covered, Arizona. Call Exceed Insurance at (855) 539-2333 for a free liquor store insurance quote.