Bars are in the business of selling alcohol for profit, but those profits can come at a cost every time an inebriated patron starts a fracas, which is why anyone that sells alcohol can benefit from a bar liquor liability policy. State liquor liability statutes (also called dram shop laws) can place responsibility for losses resulting from inebriated patrons and customers on bars and other establishments that serve alcohol to intoxicated persons.
To defend against liabilities with potentially disastrous consequences, bar owners must learn about applicable state laws, purchase adequate amounts of insurance coverage, and implement safe-drinking environments where patrons feel comfortable and state laws are observed. By not doing so they run the risk of lawsuits and extensive fines.
Common exposures associated with alcohol
Any business that sells and serves alcohol to patrons or guests under a state license needs a liquor liability policy as part of its overall business insurance portfolio. This policy may be offered as an addition, or endorsement to a commercial liability insurance policy, or as a separate stand-alone policy, and can cover various risks and costs including assault and battery charges, bodily injury, employee use liability, legal defense costs, and any property damage that might occur.
Many of the problems stem from patrons that drink too much and then engage staff or other customers in fights and other acts of physical violence. Lawsuits are often filed demanding that a business owner pay for the damage their customers inflict, particularly personal injury, which can end up costing thousands, or perhaps even millions of dollars for businesses engaged in selling alcohol.
Liquor liability coverage purchasable at affordable rates
Various policies for bar liquor liability coverage have different conditions, exclusions and limitations. Businesses may often enjoy preferred premium rates if alcohol receipts account for less than 25 percent of their overall revenues. Other credits may apply, such as credits granted to policyholders using ID scanners to prohibit underage drinking. This is why bar owners in pursuit of liability insurance should consult insurance professionals for advice before making decisions about an appropriate insurance plan for their needs.