If an individual consumes or purchases alcohol from your business, your establishment may be held responsible for their actions that result in property damage or injuries. Liquor liability insurance may provide coverage in these situations.
Liquor liability laws vary by state, but the professionals at Clockwork Insurance Services in Metairie, Louisiana, can discuss the legal requirements and help you address your insurance needs. Contact us today for details.
What Is Liquor Liability?
Liquor liability refers to a business’s financial and legal responsibilities for the acts of patrons who are sold alcohol. Liquor liability laws are also known as “dram shop” laws, which state that if a customer causes property damage or injuries after consuming alcohol and becoming intoxicated, the business where they purchased the drinks may be liable for those injuries or damages. Work with your insurer to fully understand the scope of your liabilities if you’re serving or selling alcohol.
In Louisiana, laws generally prohibit third-party liability claims against licensed alcohol sellers if the intoxicated individual is of lawful drinking and the damages were caused off the business’s premises. However, both of those conditions need to be met in order for that legal shield to apply. For example, if the individual causes damage on the business’s premises or is underage, the business may be held liable.
What Does Liquor Liability Insurance Cover?
Liquor liability insurance may provide coverage for businesses that distribute, manufacture or sell alcohol. If one of your customers becomes intoxicated and causes property damage or bodily injury, your business may be sued depending on state laws. Liquor liability insurance may help cover the resulting:
· Property damage costs
· Medical expenses of injured parties
· Legal fees
Endorsements may also be available. Your agent can provide more information on options, coverages, limits and exclusions.
Which Businesses Need Liquor Liability Insurance?
Several types of businesses that sell alcoholic beverages should consider liquor liability insurance, including:
· Liquor stores
· Grocery stores
· Catering operations
· Concert and sporting venues
Other businesses may need coverage depending on state laws, industry standards or landlord requirements. Work with our agents to help ensure you obtain the policy required.
How Much Does Liquor Liability Insurance Cost?
Several factors may impact the cost of liquor liability insurance including the following:
· The type of your establishment
· Your location
· The amount of your liquor sales
· The risk management protocols your business has in place
Other variables may also influence premiums. Reach out to us today for a quote.
The Clockwork Insurance Services team can discuss your risk profile and help you secure the commercial insurance policies that best suit your needs. Contact us today to get started.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.