Those who run a bar, winery, brewery, bartending service, restaurant, or any other business profiting from manufacturing, selling, or serving alcoholic beverages should be aware of their risks. Brewery owners could be hit with a financially devastating lawsuit. There is such a wide variety of issues that can quickly arise. For instance, an intoxicated guest could injure another guest who then sues your business for liquor-related claims. It is scenarios like that where having secured liquor liability insurance could potentially save your business. Risk management should be a top priority for your business, and your insurer can help you manage these risks. It is in your best interest to obtain NJ liquor liability insurance so you are properly prepared for what may come your way.
General Liability is Not Enough
Most businesses are insured with a commercial general liability policy, which will protect you from bodily injury, property damage, or personal and advertising injury claims. However, liquor liability claims are excluded from this coverage, so anything associated with contributing to an individuals’ intoxication, providing alcohol to a minor, or someone already under the influence and violating a liquor regulation will not be protected.
You will also want to ensure that your liquor license is not expired, as liquor liability coverage will not protect you if your license is not current.
The Highlights of Liquor Liability Insurance
This insurance covers claims associated with liquor that are excluded by general liability coverage, covering injury due to selling or serving any alcoholic beverage. In terms of this liability, injury applies to both bodily injury and property damage. You can purchase liquor liability insurance as part of a business owner’s or commercial package policy. Here are some features that are advantageous for your liquor liability coverage:
Assault and Battery Coverage
Many claims against liquor establishments are associated with physical fights, so you want to be sure this is covered in your policy.
Defense Costs Outside the Limit
A liquor liability lawsuit can be quite expensive. Be sure that attorneys’ fees and other legal expenses do not exceed your policy limit. Review defense provisions carefully with your insurer.
Liquor liability coverage will protect you from claims due to injuries that occurred throughout the policy period. The policy should be written on an occurrence basis rather than a claims-made basis to avoid being restricted to coverage limits made during the policy period.
Coverage for Mental Injuries
Those pressing charges may claim that they were injured in non-physical ways, seeking damages for stress, mental anguish, or psychological issues. Check that your policy specifically covers these instances.
About David G. Sayles Insurance Services
At David G. Sayles Insurance Services, we help our clients decide which of these options is best for them based on their current situation and risk factors. Contact us at 1-855-977-1842 or firstname.lastname@example.org for a consultation!