Public Liability Companies

Important Factors When Buying Liquor Liability Insurance

If your business deals with special events or any production, selling, providing and/or serving of alcohol, it is important that you obtain a liquor liability insurance policy. This is a type of insurance which assures protection of your business against damages or losses claimed as a result of a customer of your premises injuring others or themselves due to intoxication by alcohol.

It is critical to purchase liquor policy coverage to protect your business from any such claim made by victims or third parties. You may have standard liability policies, but they won't cover and protect your business against claims related to alcohol. The liquor liability policy may be sold as a separate liability product or in a group as an added policy to commercial liability policy.

Many businesses don't buy such policy because it is quite expensive. Actually the cost of liquor liability insurance policies can depend on the location of your business. Experts advise that those whose businesses are in states with the statute 'dram shop liability' must purchase liquor coverage policy. Remember, no insurance policy will cover your business if you serve alcohol against stsate laws or to minors.

There are a few things which you need to consider and ask for while you purchase a liquor liability package from any company. One of these is assault and battery coverage. Since most accidents or injuries result from fights in bars and restaurants, the liquor policy must cover 'Assault and Battery' coverage. If it doesn't, the real value of the policy is low. Buy a policy which covers such incidents which results from fisticuffs due to inebriation.

The liquor policy should also include defense costs. The biggest expenses in such cases of claims is the cost of hiring a lawyer. Sometimes you need to use the services of a lawyer even for frivolous claims. Therefore the insurance policy must cover such legal costs. Many insurance companies sell policies deducting the 'defense costs' and for that they reduce the premium rate. Even if your premium cost is a little higher, it is wise to choose a policies that covers defense cost. Otherwise, you can lose considerable funds hiring  attorneys for your case.

Make sure that your insurance policy quote covers your employees too. Many insurers exclude employees from their policies. So when the claim is made due to any activity of your employees you are left with finding that your insurance doesn't cover your employees. Read the terms and conditions well before you agree to any policy.

A very important aspect of liquor liability insurance policy is "damage definition" which also includes mental damage. Claimants may actually claim non physical damages such as mental anguish, stress or any other psychological impact. Your policy should cover such damages as well. It is strongly advised never to purchase a policy with limited damage.

Privacy Policy