It is important for restaurants to secure liquor liability insurance as it will cover the legal fees, settlements, and medical costs if alcohol is sold to an intoxicated individual who ends up causing harm to others or property. Liquor liability insurance offers a valuable safety net for establishments that serve alcohol.
Reduce the Risk of Serving Alcohol with Liquor Liability
Liquor liability insurance may not only be legally required for some businesses to obtain, it also provides peace of mind as it greatly reduces the chance of financial devastation that can come with risks of serving alcohol. It’s especially important for businesses that would be held responsible for the actions of intoxicated customers.
State Dram Shop Laws
Most states, including Missouri, hold businesses accountable when selling alcohol to a noticeably intoxicated individual who causes harm. For example, if an individual became intoxicated at your establishment and was to get in a car accident or assault another person, you may be held liable for all the legal, medical, and associated fees to comply with dram shop laws. Even if your establishment was not actually at fault, if a lawsuit were to occur, the settlement expenses will fall on your business.
Protection Where it Counts
Liquor liability insurance can protect your business in a variety of scenarios. However, keep in mind that under no circumstances will it be of service when underage drinking is involved. Whether you own a bar, restaurant, or any other type of business that serves alcohol, you are at high-risk for being sued for an incident relating to the service. Liquor liability can help protect you from the legal expenses that arise from:
- Accidental injury- This could be when an intoxicated individual injures themselves, injures another person, or gets into a car accident. A lawsuit could hold you responsible for the medical expenses.
- Property damage- If an intoxicated customer was to get in a car accident after leaving your establishment, they could sue you for the vehicle repair costs.
- Assault and battery- If the over-served individual starts a fight or is escorted out by staff, the injured can sue the establishment on claims of assault and battery.
- On-the-job drinking- All too often, bartenders drink on the job. Liquor liability will also protect you on the same biases of the above in regards to your employees.
You can opt to purchase liquor liability insurance as either a standalone policy or choose to add it to your business owner’s policy (BOP) or general liability policy. The amount of coverage you need depends on the size of your establishment, the policy limits you want, as well as other factors. Contact your agent to learn how to stay protected. Don’t let a liquor-related lawsuit take your business down.
About Sine Insurance
At Sine Insurance Group, we are dedicated to providing you with custom-tailored insurance policies to protect your assets. Our comprehensive packages have been expertly crafted to serve St. Louis and the surrounding areas for the past 25 years. For more information about our products, contact us today at (855) 700-0889.