Businesses that sell, serve, or allow customers to consume alcohol need liquor liability insurance to protect against risks caused by intoxication. Buy a liquor liability policy if you operate a tavern, nightclub, restaurant, bar, or a catering company that offers bartenders for off-site events. Here is the role of this insurance in accidents related to alcohol consumption:
Protection Against Dram Shop Claims
A dram shop claim holds businesses that sell and serve alcohol liable for damages caused by their intoxicated customers. Dram shop liability aims to prevent over-service of alcohol by businesses. It also provides the right legal avenue for parties injured by intoxicated individuals to seek compensation. Some instances where liquor liability insurance can protect taverns, nightclubs, restaurants, and other businesses against dram shop claims include the following:
Physical Altercations
A customer under the influence of alcohol may become aggressive, causing fights and assaults. Anyone who gets injured by the customers in your business premises can sue you for compensation. Liquor liability insurance can help cover the injured victims’ medical expenses, settlement payouts, and part of your business’s legal expenses.
Sexual Harassment
Because of impaired judgment, an intoxicated person may develop inappropriate behavior, like using sexually explicit jokes or comments. Customers with higher levels of intoxication may engage in groping and other unwelcome physical contact. Such actions make victims, like bartenders, other customers, or even entertainment staff, feel violated and unsafe in your restaurant, bar, or nightclub.
Since the law qualifies these actions as sexual harassment or assault, the victims can sue your business for negligence. Sexually assaulted employees will likely file lawsuits arguing that you failed to promote a safe working environment. A liquor liability policy saves businesses from financial devastation by covering attorney fees and settlements. The insurance covers compensation costs for victims who suffer physical trauma due to sexual assault on your business premises.
Drunk Driving
If a customer consumes excess alcohol on your business premises and causes an accident while driving, you can be held liable for the damages. Your business may be sued for negligent alcohol service or failure to train workers to recognize customer intoxication. Businesses with promotions that encourage excessive alcohol consumption may be sued for overserving customers who later cause accidents. Injured pedestrians, passengers of intoxicated drivers, and family members of the injured or deceased victims can file legal claims. A liquor liability policy helps by covering legal defense fees and protecting your business’s reputation.
Property Damage
A drunk customer in your restaurant can damage other customers’ items, like laptops or smartphones. They may also vandalize nearby cars due to drunk driving. Bartenders working at a special event may serve alcohol to individuals who later get drunk and damage the property. A liquor liability policy covers the costs of property repair and any legal fees that arise.
Buy Liquor Liability Insurance Today
Liquor liability insurance covers a variety of incidents, including falls, physical assaults, property damage, and drunk driving accidents. Obtaining this insurance helps keep your business compliant with legal requirements, protecting your license from getting revoked. A liquor liability policy also helps a business recover and get back to normal operations quickly after a claim. Purchase the insurance today to protect your business and reputation.
