Liquor liability insurance protects business entities involved in the sale, serving, and/or distribution of alcohol products. This policy shields businesses from probable legal and financial ramifications of happenings involving alcohol. Here is what liquor liability insurance covers:
Alcohol-related Accidents and Injuries
Liquor liability insurance covers losses in cases of accidents or injuries that result from a patron’s consumption of alcohol on a business’s premises. This coverage generally applies to accidents that happen on and outside the business premises. The alcohol that caused the accident needs to have been from the business. If a customer gets drunk at a bar and later on causes an accident while driving a car, the bar could be blamed for serving the customer the drink. Liquor insurance would pay for the legal defense expenses and any payout that results from lawsuits.
Defense Against Assault and Battery Claims
Many alcohol-related incidents involve physical confrontations between different customers or between customers and employees. Liquor insurance can cover assault and battery claims that stem from such incidents. This protection is key for bars and nightclubs because the likelihood of physical altercations is high, especially if the space is overcrowded. The insurance pays for the cost of treating injured persons and compensation paid to victims of violence instigated by alcohol. Not all liquor liability policies will protect against assault and battery claims, so this should be discussed with an insurance agent beforehand.
Coverage for Property Damage
Consumers who are under the influence of alcohol may harm property belonging to another business or property of neighbors. Liquor insurance covers the costs of repairing or even replacing property damaged by patrons. This protection is only afforded to the property of the damaged business. It does not cover damage to the bar owner’s property.
Legal Defense Costs and Settlements
When there is a lawsuit regarding alcohol sales and serving, the liquor liability policy will cover legal expenses. It could also include any other costs incurred in defending the lawsuit. If there is a settlement or judgment against the insured business, the policy would cover these expenses as well.
Liquor Law Violations
Some of the policies under liquor insurance include coverage of violations of liquor laws and regulations. These can be fines or penalties levied by law enforcement bodies for violations like selling alcohol to underage persons or operating without the necessary permit. This is helpful when a business has to work in highly regulated industries.
Mental Injuries and Emotional Distress
Other recoverable losses under liquor insurance could be claims for mental harm or emotional trauma. These can result from the actions of intoxicated patrons. An example is when a drunken client becomes aggressive and assaults other people, causing psychological harm. The insurance could pay for treatment in the form of counseling services for the victims.
Getting Liquor Liability Insurance
Liquor liability insurance is instrumental for any company that engages in the sale and distribution of alcoholic products. Whether it is addressing accidents and injuries or legal liabilities, insurance can help protect bars and restaurants that serve alcoholic beverages. Contact an insurance provider to obtain the necessary level of protection against alcohol-related incidents.
