When businesses get alcohol licenses, it brings an increase in revenue. However, it also creates certain risks. Overconsumption of alcohol leads to serious injuries and significant property damage, which must be covered by an insurance policy. Does your company have the coverage it needs? Read on to learn about the importance of liquor liability insurance for businesses.
Not All Insurance Policies Cover Alcohol
Most business insurance policies include some alcohol coverage, like social host liability insurance. However, these inclusions aren’t meant to cover consumers’ alcohol consumption. They’re intended for business purposes. For instance, if someone got hurt after overindulging at a company party, host insurance would cover the damages. If something similar happens after a consumer drinks, it probably won’t be covered under a social host policy. When business owners work with Garrity Insurance, they get all the coverage they need.
Do Business Owners Need Liquor Liability Coverage?
When companies manufacture, bottle, or sell alcohol, liquor liability insurance is a necessity. It’s an add-on to a general liability policy and mitigates the increased risks associated with running a business that sells alcohol. This type of coverage helps business owners manage the costs of personal injury, property damage, and litigation.
Learn What Liquor Liability Insurance Covers
All liquor liability policies are somewhat different, but most cover certain situations as described below.
- Bar fights. With what’s known as an assault and battery policy, establishment owners are covered for the injuries consumers sustain (and the property damage they cause) during fights.
- Legal fees. The owners of businesses that serve and sell alcohol are much more likely to be sued, even if such claims are false. These cases can be quite costly, but a liquor liability policy will cover the expense.
- Employees’ misbehavior. When employees drink on the job and over-serve customers, a liquor liability policy might cover their misdeeds.
Business owners should look for insurance policies that cover these situations if they are applicable. Contact an agent today to learn about your options.
The Cost of Liquor Liability Coverage
Not all businesses pay the same amount for liquor liability insurance, and the cost of a policy depends largely on where an establishment is located. For example, if a business is in an area that’s prone to alcohol-related property damage claims, the cost of coverage will be much higher. Conversely, policies go down in cost if a company in a low-risk area stays in business for years with no claims.
On average, companies pay anywhere from a few hundred to a few thousand dollars per year. That’s a wide range, but it accounts for different kinds of alcohol licenses and beverage server certificates for the employees. Some companies buy licenses for a low amount of wine and beer sales, which is much different than a full liquor license. Each type of license requires a certain level of insurance coverage, which accounts for the increase in cost.
How Can Business Owners Find Liquor Liability Coverage?
Thankfully, it’s not hard to find a liquor liability policy, as most business insurers can underwrite them. If you’re just starting out and plan to sell a lot of alcohol, you’ll likely pay more. Remember, though, that it’s much cheaper to invest in liquor liability insurance than it is to settle a case after not having such coverage. Before making decisions concerning liquor licensing and liability coverage, consider talking to an insurance agent. Contact us by phone or go online to request a consultation.
