Keep posted, keep informed.
In a previous post, we explored the basics of Liquor Liability Insurance and why your clients should carry this policy. As the first line of defense in the event a patron damages property or injures another while under the influence, liquor liability is a must. Serving liquor is a lucrative feature for any bar or restaurant owner, but it also exposes them to plenty of liabilities, which is why we are going to dive deeper into the benefits of carrying the right insurance.
It’s the law.
Dram shop laws apply to different states in different forms. However, if your clients are found liable for damages and do not carry the proper insurance, it could devastate their business.
While each state has its own guidelines that vary in strictness, most states do require restaurants that sell alcohol to carry liquor liability insurance. The severity of your state’s dram shop laws affects how much your liquor liability insurance will cost. The more rigid your state’s laws are, the more expensive the insurance will be. Even if your business is located in a state that does not mandate liquor liability insurance, if you have taken out a large business loan or have a landlord, you still may be required to purchase this type of insurance, explains Restaurant Programs of America.
It covers court fees.
Legal fees add up quickly, and liquor liability insurance will cover court costs and legal defense fees should the business be sued.
Extends coverage to BYOB clients.
If your client’s establishments don’t serve liquor, but they allow customers to bring their own, they can still be held liable in court for damages caused by intoxicated patrons. However, liquor liability insurance can protect the bar owners from incurring fees from alcohol-related damages and even cover the legal fees surrounding the claim.
About Mavon Insurance
Completely protecting a bar or tavern can be a challenge. At Mavon Insurance, we offer specialized coverages to meet the customized needs of niche markets such as bars and taverns. We offer comprehensive solutions to address these insurance needs, including Property Insurance, Business Interruption, Food Contamination, Workers’ Compensation, and many more. For more information, or to become an agent with us, we invite you to contact us today at (877) 426-2866.