Why Does Your Business Need Liquor Liability Insurance?

Liquor Liability Insurance | Liquor Liability Coverage

It’s always difficult to choose what kind of Insurance coverage you should get. This blog will help you understand why you definitely need this insurance for your business!

Every business has a variety of challenges they face in their day-to-day activities. Apart from that, business owners also need to have long-term plans to grow their business. The problem with planning is that you can’t always assume that the business environment would remain the same. Hence, no business strategy, doesn’t matter how progressive it is, can guarantee success.

But there’s always something we can do to ensure that our strategies go as planned. In this case, we suggest you rely on your Insurance. There’s a higher chance for your business to succeed when it’s secured.

Business Insurance

Getting a Business Insurance policy should help you protect your business adequately. But a basic Business Insurance plan might not be enough here. Every organization has its own unique set of products and services they sell. We’re here to talk about one specific product here, and that’s liquor.

Whether it be as a sale or as a service, dealing with liquor has an extra bit of added responsibilities. Claims that come from this side of your business may not be covered in your base Business Insurance policy. You would require a Liquor Liability Insurance option to stay completely protected.

So let’s learn more about Liquor Liability Coverage and also learn about the different ways it can protect your business against financial losses.

What Is Liquor Liability Insurance?

This insurance is a policy that protects businesses that sell, serve, or allow consumption of liquor in their establishment. It provides coverage for legal obligations and claims settlements. It also covers medical costs and other expenses of any injury or damages sustained by the consumer or a third party.

There are two types of Liquor Liability Insurance. General Liquor Liability Insurance and Host Liquor Liability Insurance. Businesses that sell or serve liquor directly to customers require a General Liquor Liability Insurance. Those that only allow the customers to consume liquor in their establishment need Host Liquor Liability Insurance.

How does Liquor Liability Insurance protect your business?

We’re going to elaborate on various situations where you get coverage from Liquor Liability.

    • Legal Costs: There is a very good chance that any incident that involves liquor may also include legal obligations. In such a case, your Liquor Liability Coverage may cover the court costs, attorney’s fees, investigation charges, and settlements.
    • Medical Costs: Liquor and intoxication can lead to an individual harming themselves or someone else. Your business will be liable for the medical and rehabilitation costs on such occasions. Your insurance will cover the medical expenses the injured individual may face.
    • Property Damages: Let’s assume that your customer ends up damaging someone else’s property while under the influence of liquor. Then your business will be as much liable for the repairs as much as the intoxicated individual. In such a case, your insurance will cover the cost of repairs or replacements.
    • Assault & Battery: Most Liquor Liability Insurances also cover the cost of claims made against a customer charged with assault & battery. Just make sure your policy doesn’t have an assault & battery exclusion clause.
    • Drunk Driving: Your business is responsible for any customer who is charged with DUI (Driving Under Influence). After thorough investigation, your business may need to pay for all the damages the customer caused while driving intoxicated.
Insurance Advice –

Commercial General Liability Insurance may provide extensive coverage. But some risks demand Liquor Liability Insurance. With the nature of the product that you sell, serve, or permit, you should also protect those who provide the product to the customers.

Hence, it’s advisable to also have Workers Compensation Insurance to protect your employees from any harm. Apart from that, we also suggest you choose Umbrella Liability Coverage. It will protect your business against more extensive claims.

If you’re looking for tips on how you file a claim, you can check out our blog: Things To Know About Business Insurance Claims. For any further advice, you can always contact one of our insurance experts at 855-5EXCEED or write to us at [email protected] You can also browse through our website for more information.

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