Generally speaking, having a couple beers at the bar with some buddies is a great time, but what if the drinking gets out of hand? As a brewery owner you should be aware of the many risks that you may face while serving alcohol. Many businesses are currently carrying liquor liability coverage but they are not covered properly. It is important to assess your liability needs and look over different policies to find the correct fit for your business.
WHAT IS LIQUOR LIABILITY INSURANCE?
Whether you're running a nightclub, restaurant, and/or bar, if you are serving alcohol you may be held reliable for injuries or damages caused by an intoxicated patron. Damages resulting from careless behavior, fights and even auto accidents can be cause for a claim. You may, reasonably, think that the patron who was drinking and caused the accident would be held responsible, but the establishment that allowed the situation to escalate to this point can be held reliable and may be sued for inordinate amounts of money, especially if the accident results in serious injuries or death. Fortunately, with liquor liability you will be able to protect your business from a large financial loss due to incidents such as these.
WHAT IS COVERED WITH LIQUOR LIABILITY INSURANCE?
Liquor liability insurance will cover you for a liability lawsuit due to personal injuries and property damages. Although your business may have done everything properly and the lawsuit may be dropped, legal defense fees and court costs can cost you heavily. Liquor liability will cover those expenses as well. The defense costs are reason enough to purchase coverage.
TAKE ACTION TO PREVENT CLAIMS
As a brewery owner you want to take extra precautions to prevent any unwanted claims being made against your business. It is important to train all of your staff who serve alcohol to I.D. any patron who appears to be under the age of 30, and to pay close attention to drivers licenses that may have been altered. Approximately 66% of places that sell alcohol do not properly check customer IDs. Many insurance companies that have liquor liability exclude coverage in cases where the patron who is intoxicated and drinking in your establishment is under-aged. As an owner it would be a great idea to have all your staff be TIPS (Training for Intervention Procedures) certified. TIPS is a training program which is designed to prevent intoxication, underage drinking, and drunk driving. You want to be sure that your staff is not serving minors as well as not over-serving patrons that are of-age. You don't have to over-serve a patron for him to get a D.U.I., so having a ride program in place to get intoxicated customers home safely is a good idea, whether it be an Uber, Lyft, or taxi.
Having an umbrella policy is never a bad idea as a business owner. An umbrella will go into effect if your limits on your underlying coverages are reached and exceeded. This is a very cost-effective way of making sure that you are covered for potentially large claims.
"Having an umbrella policy is never a bad idea as a business owner."
If you have questions regarding liquor liability coverage, or any insurance questions in general, please don't hesitate to contact us.