Liquor liability insurance helps protect your business from legal and financial consequences resulting from alcohol-related incidents. If a customer becomes intoxicated and causes harm, this insurance covers legal fees and medical expenses. Here are a few ways liquor insurance protects your business from lawsuits:
Legal Defense Fees
Liquor liability insurance provides you with the funds for legal defense when someone makes a claim against you. If authorities charge you with property damages or injuries resulting from intoxication due to alcohol service, this type of insurance covers the court fees and lawyer charges. If your business is found liable, the insurance policy covers the costs of settlements awarded to the injured party up to a set limit. These settlements include:
- Bodily injuries to others caused by an intoxicated person who was served at your business.
- Damage to property caused by an intoxicated person after leaving your establishment.
- Claims of assault and battery if the incident occurs after you serve alcohol to the client.
Dram Shop Defense
Dram shop laws hold your business responsible for serving alcohol to intoxicated individuals. A dram shop lawsuit happens when your business serves alcohol to someone, and they cause harm to others. If someone sues your business as a result, the insurance covers the legal fees. When you are charged with these lawsuits, the court investigates whether your staff was aware of or ignored the danger and continued to serve an intoxicated customer. With liability insurance, the insurer caters to the expenses of proving your case as well as settling the lawsuit.
Bodily Injury Claims
This liability insurance covers the injuries or damages caused by intoxicated customers who were served alcohol at your facility. This includes the medical expenses associated with physical injuries caused to others. Insurance further covers injuries from drunk driving accidents caused by a client you served, which can result in serious harm or death. If the intoxicated customer harasses someone or engages in fights, insurance protects your business from the claims related to these incidents.
Business Asset Protection
As a liquor business owner, this insurance protects your business assets from being seized to cover legal claims related to alcohol service. The business assets at risk during lawsuits include cash reserves, equipment, and inventory. Insurance covers all the legal bills or settlements that your business is charged for. It protects your buildings, equipment, or inventory by preventing others from seizing them to pay claims.
Host Event Protection
If you host an event that includes alcohol service, your guests can sue you for any alcohol-related incidents that arise. Liquor liability insurance protects your business from claims related to property damage or injuries caused by intoxicated guests. This coverage is valid only for the event’s duration. A reputable insurance provider will help you find a suitable coverage plan for catering events.
Learn More About Liquor Liability Insurance
Liquor liability insurance protects your business from legal suits resulting from the sale or service of alcohol. It covers claims involving harassment, slips and falls, property damage, and more. Contact a reputable insurance agent to learn more about this type of coverage and its benefits.
