For many owners, operating a bar and serving liquor go hand-in-hand with legal liabilities. With state dram shop laws and liquor liabilities, bar owners must protect themselves against a variety of potential lawsuits. However, many choose to skip out on the policies that are intended to protect their best interests in order to save money. The sobering facts about their exposures need to be examined. In order to reduce liability and protect their operations, bar owners need to ensure they have the best Liquor Liability Insurance available.
The Risks of going without.
If the bar is found liable for damages caused by drunk patrons, they can be required to pay hefty legal fees and fines- thousands of dollars that have to be paid out of pocket. For many, these ongoing legal battles and fines can bankrupt the bar. However, even if the owner does have the money to front, their reputation will be on the line and employees will likely have to be let go to accommodate the payouts.
Dram Shop Laws.
These laws require that bars be held liable for knowingly overserving a drunk patron who causes a wreck or injures another. While these laws vary state by state, many bar owners choose to forego the coverage altogether as they feel the law is favorable to liquor serving establishments.
According to Insurance Journal, many of the alcohol-related claims against bars and restaurants stem from injuries during fights between patrons. One fight could mean years in court and thousands of dollars in attorney’s fees, even if the court ultimately rules in favor of the business.
Won’t General Liability will take care of these issues?
Unlike many packaged policies, liquor liability is typically purchased separately. General liability will protect against any injuries from patrons who slip and fall on the premises, but lawsuits involving liquor are typically excluded.
In order to determine what the policy would cost, consult with an insurance professional. However, factors such as the volume of liquor sales, food items sold, and customer demographics are considered when weighing the premium price. Furthermore, ensure the policy covers assault and battery as well as legal fee protection to adequately protect the bar.
At RMS Hospitality Group, we want to ensure your bar is protected against the scope of damages that it may face. Our packages include protection against liquor liability, injury, and more. For more information about our products and services, contact our experts today at (888) 359-8390.
At RMS and associated firms, business continues as usual. Our staff is remote-capable and available to handle all partners, brokers, and insureds at the present time.
