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Restaurants and bars often assume that carrying commercial general liability (CGL) insurance is sufficient. But any establishment that serves or sells alcohol should be covered by separate liquor liability insurance due to the many alcohol related exclusions in standard CGL policies.
Before you can properly sell these policies to business owners, you’ll need to understand the various types of liquor liability coverage yourself and how to best answer your clients’ questions. Here’s a look at the different varieties of liquor liability coverage and when they would apply to your clients.
Assault and Battery
Anywhere alcohol is available, there’s a high chance of a fight starting. Bars and restaurants, and even liquor stores, have been held liable for these crimes between patrons or customers. It’s often less necessary for a liquor store to carry assault and battery coverage than bars that are serving directly to patrons, so separating this coverage from a more general liquor liability insurance policy can save money for the business owner.
Legal Defense Assistance
A good liquor liability policy won’t just pay for damages and claims, it will also cover the legal fees for a business being sued for negligence. Many bar and restaurant customers make false claims to try and get an easy settlement, so having specific coverage for paying a lawyer’s costs and court fees can make the difference between a business surviving a frivolous claim and going under.
Finally, most states carry liability beyond the four walls of a business. A patron at a bar who is served too much alcohol and allowed to walk out and drive away may crash or cause an accident. Just because the crash occurred outside of the bar does not free the establishment from liability. Clearly delineate between policies that only cover events taking place on the business property and those that extend to off-site accidents and crimes that could be linked to the establishment’s sale of alcohol.
With these tips, you’ll find it easier than ever to market and explain liquor liability insurance to your customers. Check that they have the right coverage for their type of business and consider reaching out if you think they need to expand their liquor liability policy.
About Mavon Insurance
At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (877) 426-2866.