Fulfill Business Requirements
In many locations, liquor insurance is required when opening a business that sells or serves alcohol. This includes bars and restaurants, grocery stores, and breweries. Some states require this type of insurance before a liquor license can be issued. Even if local laws do not mandate specialized liability insurance, commercial leases or lender agreements may require coverage before paperwork is signed.
Minimize Financial Loss During Lawsuits
A dram shop describes any premise that sells alcohol to customers, such as a bar, tavern, or restaurant. The Dram Shop law holds establishments responsible for serving alcohol to underage patrons or those who are visibly intoxicated. In the case of injury or property damage, either on or off the premises, a victim could sue a dram shop for liability. Dram shop cases can be first-party or third-party. A first-party case involves a victim who was a customer, and a third-party case entails a customer causing injury to others.
Liquor liability insurance provides your business with financial security in the case of dram shop lawsuits. It could cover court costs, lawyer charges, and legal settlements during lawsuits against your company. Coverage varies based on your policy and the state in which your business is located, and premiums are often determined based on your business type and sales volume.
Protect Business Assets
Insurance covers the liability charges against your business for assault or serious injuries. In the event that a customer has damaged another person’s property due to drunk driving or reckless actions, your coverage handles the materials and labor costs during repairs. It may also cover substitute charges, including replacing another property owner’s vehicle, window, or stock. This multi-faceted coverage helps protect your premises, inventory stock, and business assets from seizure for damage payments.
Safeguard Employees
