Tips for Obtaining a Liquor License

Posted on: July 7, 2021 by RMS Hospitality

Opening a new business can be a stressful time for your clients, but this is especially true if they own a bar or other establishment that serves alcohol. With the sale of wine, beer, and spirits come additional risks and obligations.

A good Sports Bar Insurance Program is one of the first steps to recommend to any new business owner. Alcohol sales increase the chance of a lawsuit from a disgruntled customer that had too much to drink and started a fight or caused damage. Work with your clients to choose the best coverage and familiarize yourself with the basic process of obtaining a liquor license so you can help them through the whole process more easily.

Who Needs a Liquor License?

A liquor license is a state-issued license to serve or sell alcohol. Doing so without the appropriate license could result in fines, penalties, or even the complete shut down of the business. The laws vary by state and can include language limiting the number of drinks per customer, amount of alcohol sales, and operating hours.

There are several different types of liquor licenses. The on-license is for establishments that will serve alcohol on the premises while the off-license is for the sales of alcohol for a patron to take home. Further, the type of business the client will run will affect the type of license they need.

A tavern license is for any place that will primarily sell alcohol. The beer and wine license is for businesses that sell alcohol with food, but don’t carry liquor. Finally, a restaurant license is what a food-serving entity that sells alcohol along with meals would need. This type of license limits the percentage of revenue that comes from alcohol sales.

How to Get a Liquor License

Now that you know what type of license your client needs, you can help them submit the application and appropriate forms to the Alcohol Beverage Control agency. Plan ahead, because the process usually takes longer than a month and can cost anywhere from $12,000 to $400,000.

Along with the application, your client may need to provide their business details and title. It’s also best to have the Sports Bar Insurance Program in place as early as possible so details are available to the necessary agencies.

Some states have a quota of establishments that can sell alcohol within a given area. If that quota is already met, the agency will reject the client’s application. If that happens, they may need to find a new location for the business or try to buy a license from another business that has closed.

The path to opening a bar or restaurant is tricky. Know what to expect so you can direct your clients as to what steps they need to take. Getting them open for business in a quick and simple manner will benefit you both.

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.

Posted in: Sports Bar Insurance

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At RMS and associated firms, business continues as usual. Our staff is remote-capable and available to handle all partners, brokers, and insureds at the present time. Contact us today!