When you own a restaurant, bar, or another commercial business, you invite the public onto your property to enjoy themselves. Almost anything can happen when you host thousands of patrons every year, which means there are a number of unique risks and liabilities involved that will require specialized commercial insurance coverage. When a business sells or serves alcoholic beverages, that’s where liquor liability coverage comes in.
What Is Liquor Liability Insurance and Who Needs It?
A liquor liability insurance policy protects a business in the case that an intoxicated patron causes bodily injury or property damage after drinking at their establishment. In most states, “dram laws” hold liable any business that serves alcohol to a visibly intoxicated individual.
If your waitstaff serves such a person, your business will be held liable for any damages that individual may cause after they leave. In these cases, liquor liability coverage will help cover a variety of costs, including legal fees, medical bills, or settlement payouts.
Liquor liability insurance is needed—and, in many cases, state required—by any business that sells, serves, or in some way allows the consumption of alcohol (e.g., restaurants, bars, or event venues). Even a catering company that provides a bartender for an offsite wedding should carry host liquor liability insurance to cover the possibility that an intoxicated guest causes damage to the venue or other property. A general liability policy will not be sufficient.
What Liquor Liability Covers (and What It Doesn’t)
Liquor liability insurance covers a variety of alcohol-related claims involving drunk driving, slips and falls, fights, or sexual harassment/assault. While it will cover property damage to others’ property, it does not cover damage to your own property.
The following are a few examples of situations that may benefit from liquor liability coverage:
- A restaurant continues to serve a couple past the point of visible intoxication, and they hit another car while driving home drunk
- A venue hosts an event with a BYOB policy on alcohol, then a guest becomes drunk on the premises and gets in a fight that incurs medical bills
- An independent bartender works a special event at a popular nightclub and serves alcohol to patrons; then those patrons get drunk and cause damage to the nightclub property (host liquor liability insurance)
How Much Does It Cost?
Liquor liability insurance costs differ between insurance companies and coverage types but are generally quite affordable. According to data from financial education website howmuch.net, the average cost of liquor liability insurance is roughly $900-$1,200 a year. Again, your amount may differ from this average based on your policy limit and the deductible you choose. The best way to determine the approximate cost for your business is to take our fast online quote questionnaire.
Get Reliable, Affordable Liquor Liability Insurance from Tabak Insurance Agency
If you own a bar, restaurant, or another business where you sell or serve alcoholic beverages, protect your business with affordably priced liquor liability coverage from a trusted insurer. At Tabak Insurance Agency, we’ve saved our clients an average of 20% on their insurance premiums over the past two years alone. Get your quote online or call us today at (281) 769-5274.