Liquor Liability Insurance

Recent court decisions and increased state regulations and laws hold vendors of alcoholic beverages increasingly responsible for a host of damage claims under liquor liability laws. 

When an intoxicated patron leaves your bar or store, gets into his car, drives, and commits vehicular manslaughter, the victim’s family could sue the bar for both civil and criminal damages.

Or suppose a restaurant serves alcohol at a catered event, where two guests have a fight, and one incurs serious injuries at the hand of a drunk person.

It’s vital that if your establishment serves alcohol, you protect yourself from potential financial losses by being covered with a liquor liability policy. In the above examples, liquor liability insurance could help cover the bar’s legal costs, court fees, and any civil or criminal damages awarded.

Liquor liability insurance is business insurance that protects your business against loss or damages claimed as a result of a patron of your business becoming intoxicated and injuring themselves or others as illustrated in the examples above. If your business manufactures, sells, serves, or facilitates the uses or purchase of alcohol, then your business needs this coverage.

New York State operates under the Dram Shop Act, which establishes the liability of establishments arising out of the sale of alcohol to visibly intoxicated persons or minors who subsequently cause death or injury to third-parties (those not having a relationship to the bar) as a result of alcohol-related car crashes and other accidents.

You may wonder who needs this type of insurance. Of course bars, night clubs and taverns come to mind first. However, other businesses may carry liquor liability as well. Some examples of businesses you would not readily think of include convenience stores, cafes and restaurants, country clubs, organizers of special events, and caterers. It is estimated by experts that only 50% of businesses that should have this coverage actually purchase this coverage. Part of this is because of misconceptions that exist in the hospitality industry regarding the industry’s liability risks for intoxicated patrons. Don’t put your businesses future at risk! With alcohol related claims, it’s doesn’t take long to ruin a good business!

There has always been a great deal of confusion about the need for liquor liability – even among insurance professionals. Liquor liability laws vary greatly by state, and insurance policy coverage options are often confusing. Let our agent’s help you understand and determine your best options. Also, read some basic information on the subject here:

1. “Dram Shop” Laws are established at the state level and hold alcoholic beverage servers financially liable for the harm that visibly intoxicated individuals cause to other people, themselves, or property
2. Liquor Legal Liability: provides coverage for bodily injury or property damage for which you may become legally liable as the result of contributing to a person’s intoxication
3. Host Liquor Liability Insurance Policies cover special events for businesses that elect to serve alcohol to their employees, prospects, and customers

Will you be held responsible?

Court decisions, coupled with new state statutes, are holding vendors of alcoholic beverages increasingly responsible for damages under liquor liability laws. Nevertheless, liquor liability insurance continues to be a quiet, if not dwindling, market around the country. In fact, more than half the establishments serving alcohol in the United States choose to operate without liquor liability insurance coverage.

We make the liquor liability process as simple as possible. By filling out a simple online form, our expert agents will shop the market for you and get you the best possible coverage. We pride ourselves on taking care of our clients and their interests.

We specialize in covering local businesses like yours. We have everything you need right here, including:

Putnam Record Insurance makes your liquor liability insurance process as simple as possible. By filling out a simple online form, our expert agents will shop the market for you and get the best possible coverage and competitive premiums. We pride ourselves on taking care of our clients and their interests.

While most insurance products are similar in price and function, insurance providers vary when it comes to structuring a policy tailored to you.

After all, there’s no such thing as a one-size-fits-all insurance policy when it comes to your business.

Contact Putnam Record Agency today, and we’ll help you protect what matters most.