If your business serves alcohol, you should probably invest in liquor liability insurance. While this may seem obvious , many small businesses don’t protect themselves from the actions of intoxicated patrons. Liquor liability insurance gives you that protection.
What Is Liquor Liability Insurance?
Simply put, liquor liability insurance protects your business against claims that arise when a patron becomes intoxicated and is injured, injures another patron, or damages property. Some of the most common claims filed against establishments that serve liquor are:
- Drunk driving
- Sexual assault and harassment
- Personal injury
What Does Liquor Liability Insurance Cover?
When an individual gets drunk, they pose a risk to not only themselves, but also the premise they occupy, and the people surrounding them. Every policy varies, but generally liquor liability insurance covers your business from:
- Property damage caused by the patron
- Personal injury caused by the patron
- Your employees (who may drink while working)
- Any legal fees related to defending your business
How Much Does Liquor Liability Insurance Cost?
Liquor liability is one of the widest varying insurance policies. Its price is based on the capacity of your building, the type of liquor you sell, the amount of coverage you want, and many other factors. Basic liquor liability insurance usually costs about $500 annually, while greater limits and other factors will result in a higher price.
Do You Really Need Liquor Liability Insurance?
Many states require establishments with liquor licenses to purchase liquor liability insurance, but in general we recommend being covered. If you serve liquor and know that some patrons can get out of hand, it’s a no brainer. It only takes one incident to create thousands of dollars in legal fees and damages.