Reasons Why Your Catering Company Needs Liquor Liability Insurance

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If your business is serving alcohol at an event, patrons may become intoxicated and damage property. These behaviors cause costly lawsuits and high medical expenses that your company will need to compensate. When you have adequate coverage, it helps you pay for such costs. Here are a few reasons why your catering company needs liquor liability insurance:

Protect Against Lawsuits

States with dram shop laws hold businesses accountable for damages caused by individuals who were served alcohol at events they cater. If a guest at an event consumes too much alcohol and fights with others, leading to injuries, your catering company could be held liable. Serving alcohol to underage people invited to the occasion can result in serious legal consequences. If an intoxicated person falls and injures themselves, your business could face a lawsuit.

Operating without the required permits or licenses for serving alcohol also leads to legal trouble. Event venues and local authorities can hold the catering company accountable for breaking alcohol service rules. When you purchase liquor liability insurance, it pays for legal fees, court costs, and medical expenses.

Cover Property Damage

Intoxicated guests could damage the event venue or its property such as furniture, decorations, and equipment. When you have liquor liability coverage, it can pay for the costs of fixing or replacing these items. This insurance also covers property damage to third-party locations or items caused by intoxicated visitors at an event.

If a patron spills alcohol on expensive artwork or damages a neighboring property due to excessive drinking, the insurance policy helps cover repair or replacement bills. To get sufficient coverage, work with an insurance agent who evaluates the type of event you’re catering to and possible risks with alcohol service. If you’re catering to a large crowd that presents more risks than a small event, you need more insurance.

Shield Company Finances

If the court finds your catering business liable for alcohol-related incidents, you need to compensate those injured or pay back property damages. These costs can be high for a small or medium-sized business to handle without insurance. When you invest in liquor liability coverage, it helps you pay for the compensation and continue operating your company without running out of finances.

Liquor liability coverage shields your catering business financially by spreading out the risk with affordable premiums. To lower your monthly premiums, insurers train staff on responsible methods to serve alcohol. This includes educating them on when to stop serving someone who has had too much to drink. By taking proactive measures, your company will operate safely, leading to fewer claims, and reducing premium charges. This approach will help improve your financial stability by minimizing unexpected costs related to alcohol issues.

Buy Liquor Liability Insurance

Whether you are serving alcohol at a small party or a public event, you need liquor liability insurance to protect your business against financial risks. By partnering with an agent, you get adequate coverage that minimizes out-of-pocket expenses in case of lawsuits. Call a reputable insurance agency to learn more about liquor liability coverage.