If you own a bar, tavern, or restaurant, you’ll face various unique risks that are easy to overlook because they don’t typically impact most regular businesses. Serving liquor on-premises will introduce different kinds of exposures related to drunken patrons. Under your state’s dram shop laws, you can be held liable for the actions of your intoxicated customers that result in personal injury, death, or property damage. This is a potentially costly exposure that you shouldn’t take lightly. If you’re in the liquor business, read on to learn more about mitigating the most common liabilities in your sector.
Serving alcohol to an underage customer may be a misdemeanor offense, but it isn’t a light matter. If the minor drives while intoxicated and kill another person in a car accident, you may face a wrongful death lawsuit. Also, if the minor falls ill or experiences mental issues due to drunkenness, their parents could sue you because you illegally supplied alcohol to their child.
You can’t control what your intoxicated customers do after leaving your pub. Nonetheless, you may be found liable for injuries or damages resulting from their driving under the influence (DUI). Because your bar served the liquor, it can be named in a personal injury lawsuit that the injured victim files in court.
Chaos in a bar or club with drunken people isn’t usually surprising, which is why you might have invested in security guards or bouncers to keep your customers safe. Despite your best effort to maintain order at your premises, fights can still break out involving multiple intoxicated guests. Any of the fighting guests could sue you for injury or loss/damage of property because you supplied the intoxicating beverages.
Sometimes, peaceful patrons that only came to have a good time with close friends can get hurt while minding their own business. Take the example of an intoxicated patron who hurls a glass bottle in a fight with fellow drinkers. The bottle misses the target, hitting and injuring an innocent bystander. The injured person could sue you for their treatment expenses arguing that you failed in your duty to protect them, as the club owner.
Fire is a potential cause of the commotion in crowded interior spaces such as a bar or nightclub. Even when nobody is hurt by the inferno itself, a dangerous stampede can occur following the sound of the fire alarm. You can be held liable for inadequate fire safety measures in your establishment if panicking patrons are unable to safely exit the building, getting injured or killed in the commotion instead. Make sure you have clearly labeled and easily accessible fire exits to allow smooth emergency evacuation.
You can minimize liability exposure for your pub, club, or restaurant by implementing adequate safety measures. Your employees, including bouncers, should be well-versed in risk reduction policies. However, it isn’t possible to stop liability claims completely. This is why you need insurance as another layer of protection for your business. Policies that can help when things go wrong to include:
General liability insurance: Ensure your GL limits provide sufficient protection against all key liabilities that your business faces day-to-day.
Liquor liability: This policy can protect your business from liabilities caused by intoxicated patrons.
Umbrella policy: Sometimes, the maximum limits on your liquor or GL coverage may be insufficient. You can expand your coverage with an umbrella policy to cover potentially bankrupting claims that exceed your standard liability limits.
Do you need help reviewing your liquor business insurance coverage? If so, contact the experts at GrayStone Insurance Group today to get started. We provide a broad range of specialty policies for establishments like pubs, nightclubs, and restaurants.
