There is no denying that alcohol is the root cause of many accidents, especially in nightclubs and bars where people come to consume alcohol and have fun but overdrinking often ends in a mess.
Intoxicated individuals are often in an altered state of mind and can cause property or personal damage. Although the individual causes the damage, your business can be directly responsible for the mess and be brought under legal action.
Moreover, these types of lawsuits can result in massive penalties and fines. A 2010 bar fight in Texas led to the state supreme court fining a bar $1.5 million because they did not stop serving alcohol despite the deteriorating situation.
Liquor liability insurance is extremely helpful in such situations; alcohol-serving establishments know that their businesses are at constant risk of alcohol-related threats, so they must secure it with liquor liability insurance.
What Is Liquor Liability Insurance?
The primary purpose of liquor liability coverage is to protect alcohol-serving businesses like bars and nightclubs from financial burdens and claims. If any accident happens related to alcohol consumption within your establishment, then by law you are held accountable for the damages. The law can also hold your business liable for not responsibly controlling alcohol service.
General liability insurance is not enough as it does not cover alcohol-related damages. Moreover, many states require liquor liability insurance in order for bar and nightclub owners to serve alcoholic beverages.
Why Is It Important For Bars And Night Clubs To Have Liquor Liability Insurance?
There is a misconception that host liquor liability, restaurant insurance, or personal liability insurance can cover the damages caused by alcohol consumption when, in fact, they do not. Liquor liability insurance ensures that your business runs smoothly and avoids heavy fines and penalties.
Bars and nightclubs are at high risk for liquor damages, so owners must be aware of all possible threats. Having insurance ensures that your business is financially protected in the event of an accident. Consider the following reasons why it is beneficial for bar and nightclub owners to hold a liquor liability policy.
1. Physical Injuries Covered by Liquor Liability Insurance
Overconsumption of alcohol can drive people out of their senses; as a result, we witness many brutal bar fights that often have serious injuries. In most cases, people rush to the hospital for emergency treatments. By law, you are responsible for giving individuals access to alcohol, and as a result may have to pay for their medical expenses, hospital bills, or other charges. Liquor liability insurance covers such medical expenses.
Liquor liability policies also provide medical fee coverage for individuals who have alcohol poisoning due to overdrinking.
2. Cover Your Legal Expenses
Fighting a legal battle is not easy. It is a long journey that takes both time and money. Liquor liability insurance covers the cost of court fees, settlements, attorney’s fees, and hidden charges. You might be able to afford it initially, but in the long run, it becomes a burden without the support of insurance coverage.
3. Cover Property Damages
People don’t know what they are doing when getting drunk, and if they attempt to drive a car in an inebriated condition, things can quickly go from bad to worse. Damage to property within or outside the bar or nightclub is not uncommon.
Intoxicated individuals can destroy other people’s property, damage public property, or harm other customers in your bar or nightclub. In these cases, your business can be held accountable for the damages and you are obligated to pay unless you have liquor liability protection coverage.
4. Covers Extra Costs And Claims
There can be various costs and claims due to alcohol serving; while they may seem insignificant and unlikely to occur, this doesn’t mean they cannot occur. Many insurance providers provide coverage for additional expenses like mental health challenges or injuries done by bouncers.
What To Look Out For
Even though liquor liability insurance covers most financial claims, there are circumstances where it will not provide coverage, such as the following scenarios:
- Incidents resulting from underage drinking. Train your employees to verify IDs; failing to do so can result in severe criminal and legal charges.
- Incidents involving damage done to your property.
- Incidents involving acts of defamation or slander committed by individuals with drinking habits or problems with overdrinking.
Get The Best Liquor Liability Insurance With MFE Insurance
MFE Insurance knows the potential dangers and risks bar and nightclub owners face. To avoid any financial trouble due to alcohol claims, get your liquor liability insurance today and secure your business in both the long and short run. Contact us or give us a call to get a free quote.