Serving Holiday Cheer? Check Your Liquor Liability Coverage
Holiday reservations and private parties can give your restaurant’s revenue a welcome boost. But when alcohol is involved, one incident can turn a profitable evening into an expensive claim, even after a guest leaves your restaurant.
Before the holiday rush, take a minute to review your liquor liability protection.
Doesn’t my general liability policy cover this?
Restaurants that sell or serve alcohol generally need liquor liability coverage to address claims arising from their alcohol service. Don’t assume your general liability policy includes that protection.
What can liquor liability insurance cover?
Depending on your policy, coverage can help pay legal defense costs and covered settlements or judgments when your restaurant is held responsible for alcohol-related injuries or property damage. For example, a claim could arise after an intoxicated patron causes a car accident.
What about fights or other violent incidents?
Assault and battery coverage deserves a separate look. It may be included, limited, excluded, or available through an endorsement. Having liquor liability insurance does not automatically mean every alcohol-related incident is covered.
How can we reduce our risk?
Make responsible alcohol service part of your holiday preparations.
- Refresh staff training on checking identification and recognizing signs of intoxication.
- Establish clear procedures for refusing service, with manager support.
- Document incidents and the steps employees take to address them.
- Have water and alcohol-free options readily available
- Help guests arrange safe transportation when needed.
Liquor sales should boost your bottom line, not threaten it. Whether you’re reviewing an existing policy or exploring coverage for the first time, contact Preferred Insurance. We can discuss your restaurant’s operations so you can head into the holiday season better prepared.