If your business sells, services or otherwise assists in providing consumers with the ability to purchase and use alcohol, you may need additional liability coverage to protect against claims. Liquor liability coverage is necessary for many businesses because it helps reduce the risk that a liability claim could have on the business’ finances. Key businesses that need this coverage may include bars, restaurants, pubs and nightclubs.
How Can You Be Responsible?
Many people believe an inebriated person would be responsible for any damage he or she causes to others — that’s a given. However, in some cases, did you know that third parties like your business could be held liable for serving alcohol to that individual? If you are found to be negligent in providing alcohol in any way, you could be held responsible for the behaviors and actions of your customer. (Isn’t that a scary thought!) 
What You Need to Know About Liquor Liability Insurance
Whether or not you ever need to use it, liquor liability insurance can help to protect your business from risks. It's rarely a good idea to neglect this coverage. Keep the following in mind:
- Some states require any location that sells alcohol to have liquor liability insurance. You may be required to have this coverage in order to obtain a liquor license.
- When you purchase this insurance, it does not protect you from instances in which alcohol is sold illegally. This includes when your employee sells to a minor.
- This type of coverage is most often excluded in a general liability insurance policy. Don't assume your basic liability insurance will cover you in these types of incidents.
Take the time to protect your business by ensuring you have the right levels and types of insurance in place. If your organization sells alcohol, these days it’s important to have a comprehensive plan to protect against civil and criminal damage caused by your customers. Don't make the mistake of not having the highest level of coverage. Liquor liability insurance can help cover your legal costs, court fees and any settlements or awarded damages. This can help to keep your business' doors open when an incident occurs.