Posted on May 17, 2014
Bars and restaurants must meet the challenge of not only providing excellent food and drinks to their customers, but they must also protect themselves from the potential liability of serving alcohol to patrons that later cause injury or property damage due to being intoxicated. This is where liquor liability insurance can help these establishments save money and their company from the potentially devastating effects of lawsuits.
Liquor liability insurance covers establishments for those customers they serve who because of being under the influence cause accidents or damage to others either on or off premises. Each state has their own laws regarding how much a victim can recover from an establishment whose customer caused the damage; however, the fact remains that restaurants and bars can be held liable for the actions of their customers. Therefore, having appropriate insurance protection in the event these claims or lawsuits occur is vital to fully protecting the business.
Certain states like Connecticut and Maine limit the maximum liability of a drinking establishment to $250,000 per occurrence; however, other states have no cap on the amount of court awards or settlements. Other states only hold companies responsible if they illegally served a minor or failed to recognize the condition of a drinking customer. The potential liability that a restaurant faces for intoxicated customers makes it all the more important to adequately protect themselves with liquor liability coverage.
As with every type of commercial insurance, training employees with a set procedure or safety rules can completely prevent these sorts of claims from happening. Staff should be able to recognize when a customer has had too much to drink and take steps to mitigate the risks of intoxication. Limiting the number of drinks, offering free food or calling a taxi can all be means to help moderate customer?s consumption and possibly prevent claims or lawsuits.