What is Liquor Liability Insurance
and Why Do I Need it?
Any establishment that sells, serves, or assists in the purchase
or use of liquor (i.e. dram shop) opens its doors for a liability claim as a
consequence of someone getting drunk to the extent that injuries or property
damages are the result. This includes restaurants, bars, nightclubs, and
taverns. While it’s logical that the inebriated person should be the one to
pay, in reality the business that served the alcohol could be liable for
injuries, damages, or both that occurred as a result of actions, behaviors, or
conduct of a patron who drank too much.
Take into Account the Following Scenarios
Liability claims made to a restaurant or bar as a result of
damages or injuries caused by an intoxicated person can be quite costly. A
common example of an alcohol-related claim occurs when an intoxicated patron
leaves a bar, gets into his car, drives, and commits a vehicular manslaughter
act. In this case, the victim’s family could now sue the bar for both civil and
criminal damages. As another example, suppose at a catered event, a restaurant
serves alcohol and two guests are subsequently involved in a fight, whereby
serious injuries are incurred. These are just two of the many scenarios that
can occur when a business that sells or serves alcohol may be held liable for
the actions of the inebriated persons served.
Accordingly, it’s vital that if your establishment serves
alcohol, you protect yourself from potential financial losses by being covered
with a liquor liability policy. In the above examples, liquor liability
insurance could help cover the bar’s legal costs, court fees, and any civil or
criminal damages awarded.
Liquor Liability Insurance Policies
The terms surrounding of a liquor liability policy vary, but
some commonalities ensue:
▪
Most states in the US require establishments that sell alcohol
to carry liquor liability insurance.
▪
Most liquor liability insurance policies exclude the selling of
alcohol illegally, such as selling liquor to a minor.
▪
Most liquor liability policies are sold as a stand alone policy
or packaged with a general liability policy.
What Liquor Liability Insurance Covers
As might be expected, a good deal of alcohol-related liability
claims filed against bars, taverns, and restaurants are a result of
liquor-induced fights or altercations. In fact, the mere act of an employee
escorting an unruly patron to the exit is frequently all that is necessary to
trigger an assault and battery allegation. Therefore, assault and battery
coverage should be included in your liquor liability policy. Lastly, litigation
costs, including the fees to retain an attorney and court costs are covered
under a liquor liability policy.
Take Appropriate Preventative Measures
Aside
from investing in liquor liability insurance, establishments should be
proactive in limiting their liquor-induced claims. From training employees to
refuse serving alcohol to clearly intoxicated persons to requiring strict
measuring of mixed drinks to encouraging designating drivers or taxi use, you
can reduce your chances of having to deal with a liquor liability claim by
implementing and enforcing safe alcohol serving practices.
No comments:
Post a Comment