As a restaurant owner, you need to be aware of things like profit margins and what can eat into them, like lawsuits over alcohol-based incidents. What happens when a patron has one too many drinks and then causes an accident or manages to trip and fall and hurt themselves (or worse, hurts others)? They may implicate your business in the lawsuit, leaving you with expensive legal fees and more.
As a restaurant or bar owner, you have to be prepared for everything. So, how can you avoid being crippled financially by these alcohol-induced accidents? Liquor liability insurance, of course.
What is Liquor Liability Insurance?
Liquor liability insurance is a type of business insurance that’s designed to provide some protection for restaurants, bars, liquor stores, and other places that sell alcohol. It’s especially important for restaurants where the bartender isn’t able to keep a close eye on how much the patron is drinking, due to their being seated at a table instead of the bar. If you own a restaurant that serves alcohol, then you need to ensure that you have this insurance in place, lest you end up being found liable for injuries and more, and having to pay out of pocket for legal expenses and settlements.
What Does Liquor Liability Insurance Cover?
Liquor liability insurance is designed to cover a number of different situations, including:
- Personal Property Damage – If a patron who’s had too much to drink ends up breaking another patron’s personal property, then the restaurant may be found liable for serving the drinks. Thankfully, liquor liability insurance covers this type of situation.
- Drunk Driving – While there are some things that can be done to prevent someone from drinking and driving, sometimes they simply can’t be stopped. If someone has too many drinks in your restaurant and ends up causing an accident due to their impaired status, your business may be named in the impending lawsuit.
- Assault and Battery – Sometimes when people drink, fights break out. Should someone who’s had too many drinks end up assaulting another person in your restaurant or right outside of it (or even anywhere in the vicinity afterwards), your business could be found liable. Thankfully, this is one of the many situations where your liquor liability insurance usually provides coverage.
The Cost of Liquor Liability Insurance
How much does liquor liability insurance cost? Your premiums depend on many factors, including the amount of liability coverage that you need, as well as whether or not this particular policy is bundled with other business insurance. Plus, things like your location and overall amount of annual liquor sales can play a role in your insurance price as well.
Have Questions? Contact Charlotte Insurance
Want to learn more about liquor liability insurance for restaurants and bars? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.