Two Insurance Coverage Needs for Liquor Establishments

Every business can be protected from financial loss arising from liability claims through a strong insurance policy. However, when you operate a bar or another liquor establishment, you will need to be more conscious of the sports bar liability issues that may come up. There are actually several types of liabilities that need to be covered.

General and Liquor Liability Insurance

To operate your sports bar, you will need both a general liability and liquor liability policy.

  1. General Liability. With this coverage, your business is protected when lawsuits or claims are filed by third parties (many times by patrons) for any bodily injuries or property damages that may occur while on the property. These policies often include product liability insurance as well, which is important for protecting the company from claims that stem from defective products (like a tainted sandwich).
  2. Liquor Liability Coverage. You need liquor coverage because anything that happens under these circumstances is not covered under general liability insurance. These incidents are excluded through the policy’s liquor liability exclusion clause. Liquor sales can be highly profitable for a company, but the exposures are significant and require extensive coverage.

Protecting your business investment is best done through a comprehensive insurance policy, as well as sound management practices. Knowing these liabilities put you on the best path to being successful with your sports bar.