As the owner of an establishment that sells alcohol, you already know that your level of responsibility and liability is higher than most because your business is prone to a wide variety of risks. Purchasing liquor liability insurance coverage can shield you from those risks.
Protects You from Unpredictable Behavior
You simply cannot predict how an intoxicated patron will behave; alcohol affects everyone differently. As well, there is no way to predict the mood of a patron when they enter your establishment.
Insurance can prepare you for these unknowns, allowing you to continue operating your business without having to worry about what may happen.
- You May Be Required to Carry It
Even if having liquor liability insurance is not mandatory in the state where your establishment is situated, it may still be required. One example is if you are renting the space for your establishment from a landlord. If this is the case, your landlord may require you to have liquor liability coverage for the purpose of protecting their property.
You may want to buy the property where your establishment does business. If this is the case, having coverage may be required when you take out a significant loan to purchase that property. Your bank will want to ensure that its financial risk is as low as possible, and insurance will certainly accomplish this.
- It Can Save You a Lot of Money
Not having liquor liability insurance can leave you vulnerable to being sued. However, it also means that all of your court costs and legal fees must be paid out of pocket whether you win or lose.
If you should be found liable, you can add possibly hundreds of thousands of dollars to what you’ve already paid out, which can place your business at risk of closing. With liquor liability insurance, you can get the help you need to cover your fees and any judgments of settlement in the event that you are deemed liable.
- It Proves Your Due Diligence
Having liquor liability insurance coverage for your establishment can help you in court. In being able to prove you took steps to protect yourself from all of the unpredictable incidents that may occur in your place of business, you show that you exercised due diligence, which improves the strength of your case.
- You May Get Free Training
Some insurance providers will provide free training to your employees in exchange for purchasing coverage.
This training can help your employees become adept at recognizing the signs of intoxication, as well as provide them with the ability to spot forged identification and patrons who are underage.
Many establishments ask why they should have liquor liability insurance. With the many benefits it provides, perhaps the question to ask is why not to have it. Tabak Insurance Agency, an experienced bar insurance provider serving eight states can help you choose the best level of coverage for your business. Call 281-712-2849 to learn more.