If you are opening a new restaurant or pub, you may be thinking about how you will protect your business with the right insurance. Pub and restaurant insurance covers all types of eateries and is a necessary policy. It must be customized to your unique needs. If you provide alcohol to your customers, you need liquor liability insurance as part of your policy.
What Is Liquor Liability Insurance?
Liquor liability insurance is a policy that covers a business from damage done by an intoxicated person. This includes injury to another person as well as damage to someone’s property.
Many states have laws that hold an establishment responsible if they serve alcohol to someone who is visibly intoxicated. The insurance policy can cover medical bills, property repairs, and legal fees for the business.
Who Needs Liquor Liability Insurance?
Liquor liability insurance is coverage for establishments that sell alcohol or provide it to their customers. A catering company may include alcoholic beverages for an event. A restaurant includes a wine list with its food menus.
Bars and pubs aren’t the only businesses that need specific insurance coverage for serving alcohol. Most eateries that include alcoholic beverages need this unique coverage to protect their business.
Is Pub and Restaurant Insurance Enough?
Pub and restaurant insurance isn’t enough to protect the business. While general liability covers damage and injury in many situations, it doesn’t include liability for your business when an intoxicated person gets into a fight and injures another person. It won’t protect your business if that person drives their car into a building.
In these situations, a liquor liability policy is necessary for your business. Many states require you to carry this extra coverage if your establishment serves alcohol to patrons.
What Does Liquor Liability Coverage Include?
When you purchase a liquor liability policy, it protects you and your business from alcohol-related claims. This includes drunk driving accidents, slip and fall accidents, fights and physical assault, as well as sexual harassment that stems from intoxication.
This policy covers a variety of situations. It will protect you if your bartender or server provides an alcoholic beverage to someone who is intoxicated. This policy covers a catering company that hires a bartender for a special event. It also covers the host of a venue with a bring-your-own-bottle party for guests where someone gets into a fight and injures another guest. You can purchase the policy if you’re an independent bartender working at a party.
The limitation of this policy is that it doesn’t cover damage to your establishment from an intoxicated patron. Your general liability insurance would activate to pay for that damage. Liquor liability is considered an add-on when you build the insurance policy for your pub or restaurant.
What Is the Cost of Liquor Liability Insurance?
The cost for this type of coverage varies based on your needs. How much coverage you request and the amount of the deductible will change your premiums. A bar or pub that primarily serves alcohol may require a higher coverage amount than a venue that only serves alcohol on occasion.
You want to plan for enough coverage to protect your business. If the cost of medical bills or damage to property is more than your policy, your business may be responsible for paying the remaining portion.
A lawsuit can cost your business more than you can afford. Liability insurance protects your assets by covering those costs. To get an estimate for the cost of a policy that will protect your business, you can request a free estimate from a liquor liability insurance provider.
Add Liquor Liability Coverage to Your Insurance
When you work with an insurance company that is experienced in the hospitality industry, that company is usually also knowledgeable about the risks involved in the business. They can help you create a policy that meets your needs and fits into your budget.
The provider of this type of insurance may also help you save money with your premiums. They will answer any questions you may have about coverage and what is included and excluded in your policy. Protect your business from incidents involving alcohol with liquor liability insurance. Pub and restaurant insurance can prevent significant losses for your establishment.