Liquor Liability Insurance
Liquor liability insurance covers businesses that sell or serve alcohol for injuries, legal claims, and property damage. It protects against lawsuits from drunk customers. Many insurers offer this coverage, and it can be added to an existing policy or bought separately. The cost varies based on the business type, location, and local liquor laws.
Importance of Coverage
All states have "dram shop laws" that allow injured parties to sue establishments serving alcohol irresponsibly. Therefore, having liquor liability insurance is crucial. The policy pays for legal fees and damages if a drunk customer causes harm, such as assault, accidents, or injuries on the business premises. It covers bodily injury claims, property damage, and associated legal costs.
Coverage for Alcohol-Serving Businesses
Any business serving alcohol, including bars, restaurants, and stores, should have liquor liability insurance. The rate depends on the risk level, with bars typically paying more than restaurants. Even caterers for weddings should have this coverage, or a special event policy can be purchased if needed.