How Liquor Liability Insurance Protects Employees
Liquor liability insurance protects your business from claims of property damage caused by intoxicated customers. It usually covers lawsuit settlements, property damage repairs, injury medical expenses, and legal fees. Here is how liquor liability insurance protects employees:
Legal Defense Costs
Insurance coverage protects employees who face lawsuits for serving intoxicated patrons. The policy can fund court costs, attorney fees, and settlements, preventing employees from bearing the burden of costly litigation caused by customer accidents.
On-the-Job Alcohol Consumption
Liquor liability insurance extends coverage to employees who consume alcohol during working hours. If they cause an incident as a result, the insurance policy covers the associated claims. This provision mitigates the financial consequences of lapses in judgment during alcohol service.
Assault and Battery
An employee is protected if they are accused of assault and battery while on duty. Insurance covers the legal defense costs when an employee handles an intoxicated patron with excessive force. It provides coverage for medical bills and property damage resulting from the incident. If an employee is injured while restraining a patron, insurance may settle their medical expenses.
Dram Shop Law Defense
Liquor liability insurance defends businesses and employees against lawsuits under dram shop laws. These laws render a business liable for the harmful acts of its intoxicated customers. The business is responsible for staff negligence in serving intoxicated customers. Insurance that includes dram shop law defense helps shield employees from fines tied to violations. If a state penalizes an employee, the policy can cover the legal defense costs.
Third-Party Property Damage Coverage
Insurance policies often cover costs if an intoxicated customer damages other people’s property. They also protect the employees involved in managing the incident from liability. Policies may cover repairs, replacements, and legal claims. This protects your business from financial loss if your staff over-serves the patrons.
Employee Indemnification
Insurance can indemnify employees if they are liable for damages caused by alcohol service. With indemnification, employees are shielded against the legal ramifications that they face. It covers unintentional errors, including accidentally serving alcohol to a minor. This applies even when an employee is directly named in a lawsuit.
Off-Premises Incident Coverage
Liquor insurance protects your business from being held liable for alcohol-related incidents outside your premises. The coverage addresses incidents that occur after a customer leaves your establishment. These include drunk driving accidents, fighting, and harassment. If a customer drives while intoxicated and causes an accident, your business is protected from potential lawsuit. Employees are protected from liability if the customer gets into a fight off-premises. The coverage can also extend to incidents where the customer harasses other people off your establishment.
Compliance and Training Support
Liquor insurance often includes compliance and training support to help minimize alcohol service risks. These training programs help servers and bartenders comply with alcohol service requirements. They teach employees how to identify intoxicated individuals and manage difficult situations. These programs aim to reduce the likelihood of alcohol-related incidents that lead to lawsuits.
Learn More About Liquor Liability Insurance
Liquor insurance helps prevent significant financial losses from liquor liability-related claims. Liquor insurance policies can often be bundled with restaurant insurance or general liability plans for additional protection. Contact a reputable insurance agency today to learn more.