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Understanding Liquor Liability Insurance: Protecting Your Business and Customers

October 9, 2023

people drinking alcohol in the barOwning and operating a business in any industry carries some element of risk. Primarily, you may worry about the financial risks of starting a business. However, there are also health and safety risks with some enterprises, including those to yourself, your employees, and your customers, that can make bar and tavern insurance in Texas essential to your establishment’s financial picture.

If you own a bar, tavern, nightclub, or any other venue in Texas that manufactures or serves alcohol, there is a great deal of liability at stake. The distribution and consumption of liquor can increase injuries and other accidents and incidents.

To protect yourself and those who frequent your business, you need to have the right bar and tavern insurance in Texas. Specifically, you will want to purchase a liquor liability policy; before you do, it’s important to understand how this coverage works in Texas.

A Word About General Liability Insurance

All businesses should carry liability insurance. This policy protects business owners against claims of liability for injuries, damage to property, slander, and false advertising. For example, suppose a customer or visitor to a company’s office is hurt in a slip-and-fall incident or by defective machinery or equipment.

In that case, commercial liability insurance will protect the business by covering medical claims filed by that person. In addition, the policy covers attorneys’ fees and other legal costs if the injured person files a lawsuit against the company. In Texas, this type of bar and tavern insurance would pay and award damages to the plaintiff in a legal case.

How Liquor Liability Insurance Is Different

Some bar and tavern owners may question purchasing an additional plan such as liquor liability insurance. Business owners may believe the commercial liability coverage is sufficient. This may be true if there are injuries at the bar or tavern due to causes outside of the consumption of liquor.

However, liquor liability insurance is essential if a customer is injured or dies at your bar or tavern — or if a customer injures or kills someone else because they are intoxicated. This insurance covers businesses that manufacture, sell, serve, or facilitate the use or purchase of alcohol.

Dram Shop Laws

dram shop rule on wooden blocksAn important element of bar and tavern insurance in Texas includes Dram Shop laws. These laws say that those businesses that serve alcohol are financially liable for any harm that intoxicated people cause others. It also has damage intoxicated people may inflict on themselves or to property.

Types of Businesses That Should Have Liquor Liability Insurance

Bar and tavern insurance in Texas encompasses liquor liability policies. Despite the name, bars and taverns are not the only types of places that can benefit from this coverage.

As Dram Shop laws apply to liquor stores, restaurants, and nightclubs, these businesses should also consider purchasing a liquor liability plan. Other businesses that sell alcohol and where it may be consumed on the premises include breweries, distilleries, and convenience stores.

Common Injuries and Accidents That Occur Where People Consume Alcohol

Accidents can take place in any business. Employees and customers alike can suffer injuries virtually anywhere. However, the risks are greater in bars, taverns, or similar establishments due to the intoxication of customers.

The most common incidents are car accidents, which can occur when an intoxicated individual gets behind the wheel and harms or kills someone else on the road.

Bodily harm can also come from physical altercations between intoxicated individuals or an intoxicated and non-intoxicated customer. Fights and other unruly behavior may also cause damage to the bar, bar equipment, bar supplies, and personal belongings that customers have with them.

Protect Your Business

glass of alcohol on leavesYou can have peace of mind by purchasing bar and tavern insurance in Texas. A liquor liability policy can cover your business if a patron or another injury victim sues you and holds you responsible for accidents or damage.

Your policy will cover legal costs, judgments or settlements, medical costs for injured victims, and repairs to damages in your establishment. If there are claims against your business of drunk driving, property damage, and even crimes such as assault and battery, liquor liability insurance can help cover legal claims.

If you own a business that distributes alcohol and where customers consume it, be certain you have the right insurance policy. For protection against legal claims and action, contact Pro Insurance Group today at 833-619-0770. You can also visit our website and ask for a quote. Our associates can help you choose the coverage that makes the most sense for your business needs.

Filed Under: Specialty Insurance

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