Exposures Related to Nightclub Liquor Liability Insurance

Bars, taverns and clubs serving drinks stand out as businesses with alcohol-related liability issues and so they need nightclub liquor liability insurance. Nightclub owners should also demand that their employees monitor patrons to ensure that they do not drink irresponsibly and to limit the amount of drinks served to any one customer. A patron bent on drinking heavily will order from more than one server or get a friend to order on their behalf, so it can be difficult to gauge and manage at times.

We suggest that you maximize your coverage for liquor liability in order to protect your establishment from any claims that you served liquor to a visibly intoxicated person, or to a minor whose subsequent actions may have caused a death or injury to a third party. A claim of this sort along with a subsequent settlement can easily end up with the award being a multi-million dollar judgment, and if your business is improperly insured you would have difficulty overcoming such a result.

The fact remains that bars and nightclubs consider assault and battery charges, in association with alcohol consumption, as the biggest liability concern this industry regularly has to deal with. Add to this the fact that, with the potential for assault and battery charges being so high, these establishments need to be well aware that general liability (GL) policies exclude assault and battery, or at the very least, reduces the limits available to a small fraction of a typical one million dollar policy.

Any coverage offered through a GL policy will likely be insufficient in most cases. Speak to an insurance professional and secure a nightclub liquor liability policy designed to meet your needs. A specialist that insures nightclubs will be able to obtain the coverage you need in the amounts you require.