The Benefit of Liquor Liability Insurance for Restaurants

Restaurants that serve alcoholic beverages face a few responsibilities. You must be careful when serving and distributing this product, as you are in control of a potentially harmful commodity. When used inappropriately or irresponsibly, alcohol can harm the consumer and cause them to harm others. When such harm occurs, the affected party might blame the supplier. If this was your restaurant, then you might find yourself in quite a lot of trouble. 

To protect yourself against the potential ramifications of an accident caused by your alcohol sales, it’s imperative that you carry liquor liability insurance in your restaurant’s commercial insurance portfolio. It is there to help you in a variety of ways and is often quite affordable, especially compared to the losses arising from an uninsured hazard. 

Policies Protect Your Responsibility for Alcohol-Related Accidents 

A liquor liability policy aids establishments that serve alcohol when this service causes someone else to sustain harm. It can help the business pay those harmed parties for their losses without putting its own financial stability on the line. 

In your restaurant, you might serve alcohol to a customer, who then continues to drive drunk and cause an accident that injures another driver. The at-fault driver’s intoxication was a cause of the accident. Therefore, the injured driver might sue your restaurant because you supplied the alcohol that caused the at-fault driver to commit their offense. A claim on your liquor liability policy enables you to provide the injured party with the proper settlement. 

Your Legal Obligations Are Secure 

Liability claims often involve the question of whether the policyholder was responsible for the harm a third party sustained. Therefore, third parties often sue the business for their losses and the matter must go to court. As a result, if you face a liquor liability lawsuit, then your liquor liability insurance will likely provide legal aid both for you and for those of the party that brings the suit. 

Coverage Helps You Meet Regulatory Requirements 

Because of the importance of liquor liability insurance, many localities require policyholders to carry this coverage along with other forms of general liability insurance. You will also need to carry the proper licensing and follow all regulations on sales and service hours. 

Keep in mind that even with this coverage, you still have an obligation to follow all other regulations on alcohol service in your area. Therefore, always train your servers on how to cut off intoxicated persons, avoid selling to minors and other safety practices that will keep your overall liability for alcohol services low.