When your business sells beer, wine, or spirits, you could be vulnerable to a lawsuit if someone were to drink and drive or otherwise injure themselves after visiting your establishment. You may think you're already covered, but general liability policies often exclude alcohol service. To guard yourself and your business financially, you should consider liquor liability insurance. If you do not know what that is, the sections below will bring you up to speed. 

What Is Liquor Liability Insurance?

Liquor liability insurance covers you if you or an employee serves alcohol to a visibly intoxicated person who thereafter causes an injury or accident. When that happens, you could be liable for the cost of third-party medical treatments, property damage, and your own legal fees. You might even face punitive damages. Liquor liability insurance covers you under such circumstances and pays for much or all of your liability exposure.

Who Needs Liquor Liability Insurance?

This type of insurance applies to bars, restaurants, taverns, caterers, breweries, and wineries, because their customers normally consume the product onsite. However, even grocery stores and liquor stores could be found at fault even though they sell packaged drinks. If you sell, serve, manufacture, distribute, or otherwise make a profit from alcohol, you likely need to protect yourself with coverage.

What Affects Premium Costs?

The more beer, wine, and spirits you sell, the more you'll normally pay for coverage. For instance, a bar whose profits are 100% from alcohol sales will pay more than a convenience store whose income is only 10% from beer and wine. Moreover, your industry will also play a role; grocery stores typically face less exposure than a winery does. Your claims history and the claims history of other establishments in your neighborhood are also important.

If you need help designing a liquor liability insurance policy, contact Michael E Glick Insurance in Boerne, TX. They have been helping businesses and individuals in and around Kendall County choose the right coverage for more than 25 years. In addition to business liability coverage, they also specialize in property, life, and auto insurance. Call them at (830) 816-9488 to request a free quote or visit their website to learn more about their products.