My name is Eric Bowman, and if you have questions about insurance, this is the blog you need to read. I was always confused when I had to purchase insurance. I would either end up paying for insurance I didn't need or I wouldn't buy the right policy. I finally decided that I was going to learn all I could about insurance policies so that I would understand exactly what I was buying. Now, I am completely satisfied with my insurance and the coverage is just what I need. I realized that there are others who are probably just as confused as I was, so I am writing this blog to help others get the best insurance for their needs and budget. I hope that my blog gives you the information you need to make the right choices when purchasing insurance.
Being able to sell liquor at your business will require a liquor license, but your responsibility doesn't end there. In addition to obtaining a liquor license, you should also carry some form of liquor liability insurance to protect your business and give you added peace of mind. Specifically, a liquor liability insurance policy (also commonly referred to as dram shop insurance) is designed to cover costs related to injuries or other incidents that occur on your premises due to alcohol consumption.
Many insurance carriers offer liquor liability coverage, but before you purchase a policy, there are some things you need to know to make an informed decision.
What Does Liquor Liability Insurance Cover?
First of all, it's important for business owners to understand what liquor liability insurance covers and what it doesn't cover. For the most part, a decent liquor liability policy should protect you against any liability claims filed against your business as a result of liquor-induced fights or accidents that result in injuries. For example, if two patrons at your restaurant get intoxicated and get into a fight in the parking lot, your policy should protect you if either party attempts to bring a lawsuit against your business. This can include anything from settlement/recovery costs to attorney and court fees.
On the other hand, your policy may not cover incidents that are linked to negligence by your staff. For example, if it can be proven that one of your bartenders grossly over-served a patron, you may not be covered. It's important to check your specific policy details to understand what's not covered while also taking steps to minimize your liability.
Ways to Minimize Your Liability When Serving
There are many ways to reduce your liability as a business that serves alcohol. For starters, make sure that your staff is frequently trained on how to recognize signs of intoxication and when to refuse service to an intoxicated person. Depending on the type of business you run, it may also be worth it to hire some security staff to mitigate and prevent incidents. This is an especially wise choice for busier days of week, such as on busy weekend evenings.
If your business serves liquor, it's in your best interest to have a dram shop insurance policy in place. Be sure to review your coverage options and explore your carrier choices before you decide on the specific policy that's right for you. Visit an insurance company like Chicago Nitelife Insurance to learn more.