Liquor liability insurance may provide protection against a variety of alcohol-related incidents that many other commercial insurance policies exclude from their coverages. While the exact protections afforded by any particular policy depend on that policy’s terms and conditions, the following are some of the types of incidents that liquor liability policies often cover.
General liability insurance normally protects businesses from claims related to certain common accidents, such as the classic slip-and-fall accident, that customers sustain on company property. If a customer slips on a wet floor and hits their head, general liability may cover required medical care.
Most general liability policies, however, exclude accidents in which intoxicated customers are injured. If a drunk customer tripped over a step and hit their head, the incident probably wouldn’t be covered by general liability because the customer was inebriated at the time of the incident.
Liquor liability insurance usually extends coverage to common accidents involving intoxicated customers. Should an intoxicated customer be hurt in a covered accident on company property, liquor liability may help pay any resulting legal fees, settlements and/or judgements.
Should one or more intoxicated customers get into a physical confrontation, people who are injured in the fight might sue the business that served the customers for damages. These sorts of claims can quickly become expensive if several people are involved.
Most liquor liability policies include coverage for physical fights where alcohol plays a role. In some cases, policies even cover emotional and/or psychological injuries, which bystanders might claims they sustained even though they weren’t directly involved in a confrontation.
In a similar fashion, many liquor liability policies also cover a business’ liability in sexual harassment and assault incidents. This doesn’t absolve the guilty party of their responsibility or any criminal consequences. Instead, it generally helps the business pay costs associated with covered lawsuits filed against them over these types of incidents.
Even if an incident involves only two people, sexual assault claims can be expensive. Lawsuits can drag on for a long time, and settlements are sometimes high because incidents can have lasting effects on the victim.
In light of how expensive these claims can be, you may want to make sure your business has robust coverage for sexual harassment and assault incidents. An insurance agent who specializes in liquor liability policies can help you find one with solid coverage, and they can also check to see whether emotional and psychological injuries to bystanders are covered.
Your business’ liability for intoxicated customers doesn’t necessarily cease when customers leave the business’ premises. Should a customer drive home while still inebriated and cause a DUI accident, your business might be held partially responsible. Needless to say, DUI accidents can be extremely severe and result in large settlements.
Liquor liability policies frequently cover a business’ responsibility in customer-caused DUI accidents. Because these claims can be so expensive, it’s generally wise to select a high limit that gives your business lots of protection for these claims.
For help finding a liquor liability policy that will give your business the protections it needs, contact World Insurance Associates. Our independent agents are well-versed in liquor liability insurance, and they’ll be able to help you find a policy that has robust protections against the alcohol-related risks your business is exposed to.