Intoxication and Nightclub Liquor Liability Insurance

nightclub liquor liability insurance

Imagine running a nightclub and being told that you are responsible for a car accident in which one or more people were injured. Did you know that the most common type of liability claim stems from the over-service of alcohol to patrons who then get behind the wheel of their car? Claims can also result from intoxicated patrons operating boats or jet skis after leaving the serving establishment, and it’s not uncommon for an establishment to be named along with other establishments in a lawsuit, which is why nightclub liquor liability insurance is such a necessary component in your insurance portfolio.

If you are running a successful business, the last thing you need is to have it all go away because you failed to properly insure against the most blaring exposure that exists in this industry. Alcohol is a great tool for attracting customers, but a bar’s liability for an intoxicated patron is one of the first things that an owner needs to consider. It’s important to understand exactly what liability risks are associated with operating a nightclub, as well as the types of issues that could expose owners to risk, or even financial ruin.

The importance of having the right coverage

Thirty states have dram shop laws that hold licensed establishments liable for the selling and serving of alcohol to individuals who suffer injury or death, or who are the cause of an injury or death to other individuals as a result of their being intoxicated. These laws also impose lower thresholds of liability for the selling or serving of alcohol to minors. An establishment that fails to thoroughly check identification of any person they suspect might be underage is opening themselves up to large fines and penalties.

One of the best investments that any bar owner can make is the purchase of an ID scanner. This machine can help to identify false documents because the responsibility for a patron engaging in underage drinking remains with the serving establishment, even after the patron has left the premises.

Don’t risk everything by trying to save a little money in the areas where it is best spent. Buying adequate nightclub liquor liability insurance is the best way to protect your business and your reputation.