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What Is Liquor Liability Insurance?
Liquor liability insurance, also known as dram shop insurance, protects businesses that manufacture, serve, or sell alcohol. It covers legal fees, settlements, and medical costs associated with bodily injury or property damage caused by an intoxicated person who was served or sold liquor by the policyholder.
Who Needs Liquor Liability Insurance?
In most states, liquor liability insurance coverage is required for businesses that sell or serve alcoholic beverages. You’ll need it if your restaurant:
1. Sells alcohol.
2. Distributes alcohol.
3. Serves alcohol at an event.
4. Allows customers to bring alcohol and drink it.
What Does Liquor Liability Insurance Cover?
Liquor liability insurance covers claims related to drunk driving, assaults, and property damage. Here are some scenarios where it can help:
1. Overserving Accident: If a person gets into an accident causing injuries after your restaurant overserved them.
2. Minor Purchases Alcohol: If a minor buys alcohol at your store, gets drunk, and crashes a vehicle through a storefront.
3. Assault by Patron: If an overserved patron assaults someone outside your bar.
4. Employee Misconduct: If an employee drinks on the job and causes injury or property damage to someone else.
The policy can cover legal costs, settlements, judgments, medical bills, and repair costs for damaged property.
Preventing Liquor Liability Damages
To minimize risks, consider these preventive measures:
1. Alcohol Server Training: Provide waitstaff and bartenders with alcohol server training. Topics may include recognizing signs of intoxication, refusing sales, checking IDs, and understanding state laws.
2. Defined Pour Policy: Implement a pour policy to control inventory and prevent overpouring, which affects your bottom line and customer intoxication.
3. Discourage Intoxication: Tactfully inform customers when they’ve had enough to drink, prioritizing their well-being and your restaurant’s success.
4. Promote Ridesharing Services: Encourage customers to use Uber, Lyft, or local taxi companies to avoid drinking and driving.
Remember, Pekin Insurance offers more than just liquor liability insurance. Contact your local, licensed Pekin Insurance agent to tailor the right business insurance plan for your restaurant!