Perhaps you run a bartending service, bar, brewery, winery or restaurant? Or maybe you are in the business of manufacturing, selling, or serving alcoholic beverages in Michigan? If this describes your line of business, then it means that you are always at the risk of a lawsuit from a customer that has consumed too much alcohol and who is likely to cause a disturbance.
If the business you are running is one that involves serving liquor to customers, then you’ll know that it’s a good idea to get your establishment insured so that you’re covered for any incidents that may arise, as a result of serving alcohol to the public.
If you’re selling alcoholic drinks, then the risk will always be there for people becoming too intoxicated when on your premises or at a venue that you are selling liquor at. People are accountable for their own actions, but it doesn’t mean that they then can’t try and make your business the one that’s liable, should they then go on to have an accident.
So what kind of insurance is best for your needs when you own a business in hospitality such as a bar or restaurant?
General liability insurance
This insurance is required by the state for most business owners. General liability insurance is designed to protect business owners from direct or indirect damages to another party. Your liability insurance helps pay for those damages caused by the actions of your business, or your employees. The coverage includes pay outs for property damage and personal injuries involving customers, visitors and sub-contractors.
Taking out this insurance will provide you with lawsuit protection, should a customer or delivery person become injured while on your business premises. General liability insurance covers the cost of the lawsuit.
These policies can contain different levels of cover, that might include medical costs for transporting the injured party to hospital.
Liquor legal liability insurance
Any service type business that sells alcoholic beverages such as restaurants, hotels, taverns, sports bars, package stores, halls and private and fraternal clubs, nightclubs, riverboat casinos, bowling alleys, special events and bed and breakfasts, will need to take out liquor liability insurance.
This form of insurance covers property damage or bodily injuries for which a business may be responsible for after allowing a person to become intoxicated on the premises. Liquor legal liability is a separate form of insurance, and it only covers parties in the business of selling, distributing, manufacturing or serving alcoholic drinks for free or for profit where a license is required. The general liability policy will not cover this, so this is a point to be factored in when taking out a policy.
By taking out liquor liability insurance, you’re protecting it against unlawful actions from intoxicated customers and because liquor liability insurance covers the types of liquor-related claims that are likely to occur, you know that you have the cover that is more than likely not going to be included with general liability policies as a whole.