Understanding Liquor Liability and What It Covers

Posted on: May 18, 2022 by RMS Hospitality

Understanding liquor liability is important for every bartender or bar owner who wishes to serve their patrons’ alcohol. Whether you often serve whiskey neat or scotch by the shot, serving liquor comes with a host of liabilities. The minute you pour a drink, you become responsible for a world of potential damage, and mitigating this risk isn’t always easy.

Understanding Liquor Liability

De-escalation techniques and innovative serving strategies can undoubtedly go a long way, but most bar and restaurant owners need more. That’s why liquor liability insurance exists. If you want to enjoy the profits of serving liquor but avoid the problems, find out how a liquor liability policy can help you do so.

What Liquor Liability Insurance Is

What should you know about liquor liability insurance? First, understand what it is and why it’s necessary. Liquor liability insurance is a specialized scope of coverage explicitly designed for establishments that sell and serve liquor. Liquor comes with with increased liability — including the potential for physical injury and property damage — an insurance policy is necessary to safeguard your assets and mitigate the expenses associated with incidents.

Understanding Liquor Liability Coverage

What does liquor liability insurance cover? The answer depends on what kind of coverage to opt for and who your insurer is. Generally, though, it can cover expenses associated with an accident that an establishment is found liable for—this is beneficial, considering the average cost of a drunk driving accident can be $3.2 million in the event of a death. Similarly, if an intoxicated patron assaults another patron, this form of insurance can cover the medical bills and other liability expenses that may accompany such an event. Finally, if your staff members cause damage due to their own drinking, you can count on liquor liability coverage to provide protection.

Damages Excluded from Coverage

Although liquor liability covers a broad scope of liabilities, certain damages have coverage exclusions. The most notable of these is damage that affects the property of your business. There is always a concern that an intoxicated patron can cause damage to your bar or tavern. If a drunk customer harms your building, inventory, or other commercial assets, commercial property insurance covers the damages — not liquor liability insurance.

Who Needs Liquor Liability Insurance

You may not think that your establishment needs liquor liability insurance, but if you serve alcohol. However, it is one of the most significant investments you can make in the safety and longevity of your bar. Without insurance, a single liability incident could cause immeasurable financial duress. With insurance, though, you can file a claim and wait until you receive compensation or repair the damage. The answer is clear, then — who needs liquor liability insurance? Any business owner whose establishment serves alcohol can benefit from the peace of mind that a liquor liability policy provides. 

About RMS Hospitality Group

At RMS Hospitality Group, our expertly crafted policies are written specifically for the hospitality industry. We offer custom tailored solutions to meet any venue’s specific needs. For more information, contact our knowledgeable experts today at (888) 359-8390.

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