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Liquor liability insurance, also called dram shop insurance, is a business insurance policy that protects organizations from the legal and financial risks of serving alcohol. Although bars, restaurants, and other establishments typically prioritize safety, accidents and incidents still happen.
From property damage to personal injuries and more, the risks resulting from serving alcohol are significant. That’s why investing in dram shop insurance is crucial for any bar, nightclub, or pub. So today, we’ll discuss what liquor liability insurance is, the benefits of possessing it, and who should purchase it.
What is Liquor Liability Insurance?
Liquor liability insurance is a type of business insurance that protects organizations that serve or sell alcoholic drinks. These policies often cover a range of issues and incidents related to excessive alcohol consumption, including barfights, drunk driving, and underage drinking. Namely, this insurance covers damages and legal fees such as medical bills, property damage, or court costs stemming from alcohol-related accidents.
Benefits of Liquor Liability Insurance
Possessing liquor liability insurance provides numerous benefits to any business that serves alcohol. Without dram shop insurance, any incident caused by improper alcohol consumption can be quite costly. Liquor liability coverage helps protect businesses by covering expenses associated with property damage, lawsuits, medical bills, and more.
In the event of an accident, this coverage can help reduce the burdens of financial and reputational loss. Plus, if an alcohol-related incident results in a court case, liquor liability coverage can also help cover any legal fees. Therefore, any business can pay for skilled attorneys to navigate their legal issues, provide sound advice, and protect their rights.
Who Needs This Insurance?
Not having dram shop insurance puts many businesses at risk of ruin from a lack of legal and financial protection. Most states require businesses with liquor licenses to possess dram shop insurance, and not having it could lead to fines, legal fees, and a revoked liquor license.
Any business that serves or sells alcohol should consider investing in dram shop insurance. This includes restaurants, bars, nightclubs, event venues, and more. Even if a business only serves alcohol on rare occasions, it can still benefit from having this type of coverage.
We must note that liquor liability coverage is not just for businesses that sell alcohol. Even host liquor liability insurance, also known as social host liability insurance, can protect events. This coverage is commonly purchased for events like weddings and parties that serve alcoholic beverages.
It's important to realize that the costs of dram shop insurance are minor compared to the potential costs of a lawsuit incurred from an incident that was your business's responsibility. Therefore, if you're serving alcohol, make sure you have added liquor liability coverage to your insurance portfolio.
Get a Free Business Insurance Quote Today
Liquor liability insurance is a necessity that every alcohol-serving business should purchase. With benefits like financial protection, peace of mind, and legal protection, it’s essential to invest in this type of coverage for long-term success. Be sure to consult with a knowledgeable insurance professional so they can assess your specific needs and ensure your business is adequately protected against any potential losses.
If you need assistance choosing the right business insurance policies, contact Omega’s experienced insurance agents. Their valuable guidance and free quotes have helped many businesses find the right policy for their needs. Our team’s expertise in liquor liability insurance ensures that you have the right coverage to protect your business from potential risks and liabilities.
