If you own a hospitality business, the safety of your assets becomes a top priority. Whether it’s a bar, restaurant, or any other establishment that sells or serves alcohol, you need to protect yourself from potential liquor liability. A liquor liability insurance will help you manage risks that may arise from selling or serving alcohol. This insurance policy protects your assets by covering costs associated with alcohol-related incidents.
Ways Alcohol Can Lead to Liquor Liability
Selling or serving alcohol comes with various risks. These risks may include minor mishaps, such as personal injuries to intoxicated patrons. In other instances, intoxicated patrons may get into a fight on-site and injure others or damage your property. Liquor liability can also occur when an intoxicated patron leaves your establishment and causes a car accident. Your business will be held liable for any property damage or injuries resulting from the accident.
If any of these incidents occur, whether on-site or off-site, you may face legal claims. The law requires the business owner to cover the costs incurred, including lawsuits, medical bills, and property damage. Here are a few ways liquor liability insurance protects your business if named in a lawsuit:
Covers Legal Costs
Lawsuits associated with alcohol-related incidents can be extensive. If your business is named in a lawsuit, there are court fees, attorney fees, and other related expenses. Such costs may create a financial strain on your business if you’re paying out of pocket. This liquor insurance will cover the legal fees, protecting your assets during legal proceedings.
Covers Medical Expenses
An intoxicated patron can injure themselves or others on-site or off-site. If the law finds your business liable, it becomes your responsibility to pay the resulting medical expenses. The liquor insurance policy will help cover the cost of medical treatment, reducing the financial burden on your business.
Covers Property Damage
Damage to other people’s property may fall under the liquor insurance as well. This occurs when an intoxicated patron harms someone else’s business or vehicle. In such scenarios, the costs of repairing or replacing damaged properties become the responsibility of your establishment. With this liquor insurance, your business will be protected against property damage without incurring any out-of-pocket expenses. Damage to the bar owner’s property doesn’t fall under this insurance policy. To protect your property against damage, you’ll need to get general liability insurance. Reading dram shop laws may help you understand the damages that liquor insurance can cover.
Covers Settlements and Judgements
In some cases, lawsuits result in settlements or judgments against hospitality businesses. It becomes the responsibility of the business owner to pay the costs of settlements and judgments. With the right insurance policy, like liquor insurance, your business doesn’t have to bear the overall financial burden. This policy covers the costs of settlements and judgments, often up to the policy limit. The aim is to protect businesses from depleting their assets trying to pay these expenses.
Get Your Liquor Liability Insurance Policy
Choosing the right insurance policy can provide an added layer of protection for your hospitality business. With liquor insurance, you can operate your business with peace of mind, knowing you’re shielded from significant liability costs. This insurance policy protects your assets, eliminating the need to cover expenses with your finances. Equip your business with liquor liability insurance today to address alcohol-related incidents.
