Many businesses are exposed against lawsuits covered by a standard, general liability policy. However, business owners often fail to notice their responsibility for losses related to circumstances involving alcohol. A typical liability policy for a business generally excludes coverage contrary to the law and sales to minors.
The policy’s exclusions apply solely to businesses that make, distribute, sell, serve or furnish alcoholic beverages. Ultimately, companies are covered for their liquor liability exposures. Other companies may need to take on special protection. This protection is offered by a Liquor Liability policy which protects bars, restaurants, hotels, motels, package liquor stores or other locations that handle liquor. It also protects liquor manufacturers as well as owners of property that houses liquor-related businesses. Claims involving injury or damage caused by customers who were provided liquor by the covered business are handled within this policy.
Liquor liability policies will protect businesses to situations such as:
· A liquor store is sued by parents of minors who take on foolish actions after drinking wine from the store that sold them the liquor
· A bar owner is sued by a person who was injured when an intoxicated person stood on the bar and fell on him
· A restaurant is sued by a customer who is hurt during a fight between two intoxicated costumers
· A bar owner is sued by the family of a women killed by an intoxicated driver who purchased liquor from the bar
There are several limitations involved in the liquor policy. Essentially, it only will respond to claims due to losses involving the insured business owner and employees. There is no coverage for acts done intentionally. Further, situations such as food poisoning or contamination from the alcoholic beverage itself does not apply.
If you are a business owner and your business is continuously exposed to liquor, be sure to contact an insurance professional and arrange for proper coverage.
If you have any questions about your existing policy, are inquiring information about a possible future policy or need further information, please call us at (631) 738-7300 or get a quick quote at www.vrpinsurance.com
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