As the owner of an establishment that sells alcohol, you already know that your level of responsibility and liability is higher than most because your business is prone to a wide variety of risks. Getting insurance for bars means considering all of these risks as well as preparing for all those incidents you can’t predict.
Liquor liability insurance coverage can shield you from those risks. Here is how:
It Protects You from Unpredictable Behavior
You simply cannot predict how an intoxicated patron will behave. Alcohol affects everyone differently, and there is no way to predict the mood of a patron when they enter your establishment. Did they have a bad day? Are they prone to loud behavior? Is someone egging them on.
There’s no way to tell until it happens.
Bar insurance can protect you from the costs incurred by these unknowns, allowing you to continue operating your business without having to worry about what may happen.
You May Be Required to Carry It
The insurance required for bars is different in every state. Even if it’s not mandatory in your state, it may still be required. For example, if you are renting the space for your establishment, your landlord may require you to have liquor liability coverage for the purpose of protecting their property.
You may want to buy the property where your establishment does business. If this is the case, coverage may be required in order to take out a significant loan to purchase that property. Your bank will want to ensure that its financial risk is as low as possible, and insurance will certainly accomplish this.
It Can Save You a Lot of Money
The absence of liquor liability insurance can leave you vulnerable to law suits, and all of your court costs and legal fees must be paid out of pocket whether you win or lose.
If you are found liable, you can add possibly hundreds of thousands of dollars to what you’ve already paid out, which can place your business at risk of closing. The right bar insurance can get help you cover your fees and any judgments of settlement in the event that you are deemed liable.
It Proves Your Due Diligence
If you have the insurance required for bars, it can help you in court. You will be able to prove that you took steps to protect yourself from all of the unpredictable incidents that may occur in your place of business. In other words, you show that you exercised due diligence, which improves the strength of your case.
You May Get Free Training
Some insurance agencies will provide free training to your employees in exchange for purchasing coverage.
This training can help your employees become adept at recognizing the signs of intoxication and teach them how to spot forged identification and patrons who are underage.
Many establishments ask why they should have liquor liability insurance. With the many benefits it provides, perhaps the question to ask is why not to have it.
Tabak Insurance Agency is an experienced bar insurance provider serving states across the country. We can help you choose the best level of coverage for your business. Contact us today or call one of our agents at 800-806-0689 to learn more.