Dram shop or liquor liability insurance is a special type of commercial general liability policy. You need the policy if you own a business that sells, distributes, supplies, or serves alcoholic beverages. The policy can be part of your general liability insurance coverage or a standalone policy. Here’s how liquor liability protects your business:
Physical Injuries and Property Damages
If a customer intoxicated at your business injures someone else at the property, the injured person can sue you for bodily injuries. Liquor liability insurance offers reimbursement for immediate medical expenses resulting from the injury. The injured party can also claim lost wages, emotional distress, and other related damages caused by the injury. Liquor liability policies sometimes cover psychological damages suffered by bystanders, even if they’re not directly involved in the confrontation.
Some insurance policies extend coverage to injuries not covered by general liability insurance, such as slip-and-fall injuries suffered by an inebriated patron. Liquor liability policies also cover the cost of replacing or repairing damaged property belonging to a third party. The coverage only applies if the property damage is caused by a patron intoxicated at your business. Each policy is different, and insurance providers feature add-ons to help you cover the gaps left in your primary coverage.
Assault and Harassment Cases
Your business can be found liable for assault and harassment incidents that occur at your premises. Such lawsuits take a long time to resolve, resulting in costly legal fees. Settlements are also usually high because of the potential long-term effects on the victim. Liquor liability policies can pay the costs associated with the lawsuit filed against your liquor business.
The insurance doesn’t absolve the patron responsible for the harassment of potential criminal consequences, but it serves as a safeguard to protect your business from legal defense costs and settlements. Because of the sensitive nature of sexual harassment lawsuits, you need robust policies featuring coverage for emotional and physical damages.
DUI Accidents Caused by Inebriated Patrons
Your liquor shop has partial liability for accidents caused by drivers intoxicated at your business. Visibly inebriated patrons must not be served any more liquor or allowed to drive home. Serving liquor to minors or customers with no right to drink in public also makes your business liable for DUI accidents caused by such people. The injured party can sue your business for bodily injuries, property damages, lost wages, and other related damages.
DUI accidents can be severe or even fatal, resulting in lengthy and expensive lawsuits. Liquor liability policies cover your business’ responsibility in such cases. Choose a high-limit policy that offers adequate protection for worst-case scenarios. You can work with a dram shop insurance provider to calculate your limit based on existing precedence on such settlements.
Purchase Liquor Liability Insurance Today
Liquor liability coverage protects your business from many other lawsuits, including liquor law violations and employee negligence. Such alcohol-related lawsuits can attract huge settlements that can cripple your liquor business and lead to bankruptcy. Insurance policies shield your business from out-of-pocket expenses, protecting your assets and cash flow from being spent in lawsuits. Contact a liquor liability insurance provider today to customize coverage based on the risks your business faces.
