Liquor Liability Insurance for Restaurants and Caterers
The best way to protect yourself against costly lawsuits is to purchase liquor liability insurance. The average cost to defend a liquor liability claim is $150,000, and a settlement in a liquor liability case could cost your business $500,000 or more. If an employee of your restaurant or catering business serves alcohol to someone who is intoxicated or underage, your business could be sued and held responsible for that person’s actions. For example, if a server or bartender in your establishment serves someone a few drinks and that person then causes a motor-vehicle accident on the way home, your business could be sued for violating state laws, serving an intoxicated person, or failing to property hire and train your employees.
Even if your employees are well-trained and refuse service to an inebriated or underage person, you could still find yourself facing a lawsuit. Even lawsuits without merit can be costly, as legal defense costs can quickly accrue.
What Liquor Liability Insurance Covers
Liquor liability insurance provides coverage for bodily injury and property damage related to your business selling, serving or furnishing any alcoholic beverage. This type of insurance pays for your legal defense and any verdicts or settlements your business may face, up to the limits of your policy. The insurance company will also take on the time-consuming management of the litigation process on your behalf, providing expert defense attorneys who specialize in liquor liability claims.
Contact Business Insurance Now for a Free Risk Assessment
Many food service business owners need help understanding liquor liability insurance and what it covers. Contact the restaurant insurance experts at Weinsurancexyz for a free risk assessment to help you select the right coverage for your business.