Top Risks Covered by Liquor Liability Insurance for Local Businesses

Serving or selling alcohol can be a lucrative part of running a restaurant, bar, event venue and many other types of businesses in the hospitality and retail sectors. However, doing so can also bring extensive and unique risks and exposures. As such, it’s paramount for any business that provides alcohol to customers or guests to financially protect themselves from resulting potential liabilities, including through suitable insurance.

What Is Liquor Liability Insurance?

Liquor liability insurance is designed to address the financial ramifications of incidents and subsequent claims related to the sale or service of alcoholic beverages. Businesses that serve or sell alcohol may be held legally responsible if a customer causes an incident from which other parties accrue losses, which could lead to costly damages and legal proceedings.

What Can Policies Cover?

Specifically, liquor liability coverage can often help account for the following incidents:

• Third-party bodily injury—If a patron becomes intoxicated and injures another person—whether through a physical altercation or an accident—your business could be held liable. Liquor liability insurance can help cover affected parties’ medical expenses and other losses.
• Other parties’ property damage—Alcohol-related incidents sometimes result in damage to property, such as to vehicles, buildings or personal belongings. This coverage can help cover your business if you are found responsible for these damages.
• Legal defense costs—Defending your business against liquor-related claims can be costly, even if you are not found at fault. Fortunately, liquor liability insurance can include coverage for attorney fees, court costs and other legal expenses.

Who Needs Coverage?

Georgia law may require certain businesses to carry liquor liability insurance, especially those seeking a liquor license. Even when not mandated, having this coverage is a smart way to financially safeguard your business from unpredictable risks and costly lawsuits. Without suitable insurance, your company could face catastrophic out-of-pocket expenses that might derail its growth and jeopardize its future.

How Our Team Can Help

Contact Lord & Associates Insurance Agency today to discuss liquor liability insurance and how our team can help you manage your risks with optimal coverage.

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.