Any dram shop (an establishment that sells, serves, or assists in the purchase or use of liquor) is at risk of liability claims. These claims can arise when a person becomes intoxicated and causes personal injury or property damage. While it makes sense for the person who got drunk and caused the damage to be held liable, the business that served the alcohol can also be held liable, based upon the facts in the case.
Why Carry Liquor Liability Insurance?
Bars, restaurants, nightclubs, and taverns all need liquor liability coverage. Most states in the U.S. require any establishment that serves alcohol to carry this insurance. It helps protect the establishment from financial losses when a claim is filed, including legal fees, court costs, and damages.
Alcohol-related claims often arise when an inebriated person gets behind the wheel of a car and causes serious injuries or commits vehicular manslaughter. In such a case, the injured party or family of the deceased could sue the establishment that served the liquor for both civil and criminal damages.
Another scenario is when inebriated patrons get in a fight that results in serious injuries. The business that served the alcohol could be held liable for the actions of the alcohol-impaired patrons and the damage inflicted upon others. Our agent at Minnesota Employers Insurance Services in Maplewood, Minnesota, can help you ensure that your business is protected.
Cost of Liquor Liability Insurance
The cost of your liquor liability coverage will depend on the type and size of your business. Factors that affect your premium amounts include:
- Policy limits
- Type of coverage
- Opening and closing hours
- Capacity of your business space
- Type of alcohol you sell or serve
Liquor liability insurance is usually less expensive as an add-on to a commercial liability policy. Our agent at Minnesota Employers Insurance Services can help you find the coverage you need and will seek out the best coverage at the lowest possible rates.