Alcohol consumption increases the chances of fights and misconduct that may lead to harassment, injury, property damage, and other accidents. If you serve alcohol at your event venue, remember to purchase adequate liquor liability insurance. This coverage protects your business from lawsuits that may arise when alcohol leads to injury and other damages. Here are a few tips for navigating the complexities of liquor liability coverage:
Understand Your Liquor Liability
Alcohol service can contribute to an accident or injury, and guests may get intoxicated and start fights that lead to property damage or bodily injuries. Driving while drunk increases the chances of accidents. Intoxication can also lead to sexual harassment and other inappropriate behavior.
As an event venue, you may be held liable for damages caused by intoxicated guests that you serve at your parties. Liquor liability insurance provides coverage for such litigations, protecting business funds and assets from being used in legal fees and settlements. General liability insurance usually doesn’t cover damages linked to alcohol intoxication. Without liquor insurance, your venue could incur significant costs during lawsuits.
Liquor liability coverage pays your legal defense and settlement to third-party plaintiffs. You can check if local laws require your venue to have such coverage. Many states require liquor liability coverage if you hold a liquor license. Many planners and organizers will expect this coverage when hiring your venue for their party.
Choose the Right Coverage
Insurance providers have unique coverage options for different venues. As an event venue, you may also sell alcohol, which requires obtaining a liquor license. All owners of a liquor license need comprehensive liability insurance, and some states require you to have a minimum coverage amount. The insurance pays for medical expenses and property damage to third parties. You can also use it to cover legal fees associated with the incident.
Some event venues don’t sell alcohol, but permit guests to bring their own. Such venues require a host liquor liability coverage to protect the business from incidents linked to alcohol intoxication. Insurance providers also have coverage for individual bartenders. You can even customize the policy or combine packages to match your unique needs.
Consult the insurance provider to review the different options carefully. Select policies that match how alcohol service and consumption are managed at your venue. Find out if the city has specific requirements for your business and verify that you comply to avoid fines. You can also calculate the minimum coverage amount for your business based on the types of events you host.
Maintain the Policy Conditions
Liquor liability policies often have unique conditions that venues must meet for successful claims. The policies also feature exclusions and deductibles, among other terms. Insurance providers may limit or not offer coverage for incidents involving intoxicated minors or off-site damages. They also expect you to adopt specific practices, such as training your staff in responsible alcohol service. Alcohol service teams should learn how to identify signs of intoxication. They must also request proof of identity to prevent underage drinking, and monitor service closely to spot issues before they escalate.
Hire licensed bartenders and caterers who carry their own coverage to strengthen your venue’s protection. You can also hire security personnel during large gatherings to limit the potential for physical altercations. When dealing with multiple vendors, provide clear contracts that declare responsibility for alcohol service to maintain accountability. These steps may help lower premiums and prevent claims denial.
Get Liquor Liability Insurance Today
Insurance protects your business from costly lawsuits that may arise from any event where alcohol is present. Whether you sell the alcohol or let guests bring their own, maintain the right coverage to prevent alcohol-related claims. Contact a liquor liability insurance provider today to start customizing your policy.
