Liquor liability insurance is an insurance policy that includes alcohol-related incidents within the coverage when guests of a business or party are intoxicated.
This version of liability insurance provides coverage for property damage, court and legal fees, patron and insured’s medical expenses, and other related expenses that may result from serving or distributing alcohol.
Liquor liability insurance is generally sold separately from a commercial liability policy and can be augmented with additional levels of coverage to meet the needs of individual businesses.
What Does Texas Liquor Liability Insurance Include?
Texas liquor liability insurance works to protect those that sell liquor in a business setting or serve alcohol in restaurants or private events from claims arising out of intoxicated patrons. The coverage typically includes protection for damages caused by those who are intoxicated, including personal injury and property damage.
This insurance type may also provide business coverage if the owners become sued for serving alcohol to a minor.
Having Liquor Liability Insurance can also help in the case that one of your bartenders over-serves a patron and they cause an accident on their way home. This insurance has many other benefits, and it is crucial to ensure your business is protected.
What Are the Benefits of Having Texas Liquor Liability Insurance?
There are many reasons why you need liquor liability insurance in Texas. If you sell liquor in a business setting or serve alcohol in restaurants or private events, courts can find you responsible in many different situations.
Texas liquor liability insurance helps businesses and individuals in the following ways:
Protection Against Costly Lawsuits
Texas liquor liability insurance helps protect against costly lawsuits because it covers legal expenses, property damage, and injuries caused by alcohol-related incidents.
This insurance can help cover the costs associated with defending yourself in court or settling claims made by those affected by your business. It can also provide protection and coverage for specific fines or penalties levied against you due to violations of state laws or regulations related to alcohol use.
Avoidance of Statutory Damages
Having Texas liquor liability insurance can help avoid statutory damages by providing coverage for injuries or property damage caused by the insured.
This insurance coverage can provide financial protection if the insured is liable for damages, as it will cover legal costs and settlements related to the incident. Additionally, it includes coverage for third-party claims if someone becomes injured at an event hosted by the insured.
Coverage of Legal Costs
Texas liquor liability insurance covers legal costs by providing coverage for lawsuits that may arise from the actions of intoxicated patrons.
When you possess liability insurance, you will often find support when it comes to lawyer and legal fees, as well as settlements you are ordered to pay.
Liquor Liability insurance can also cover defensive propositions such as expert witnesses or additional evidence to help defend against a lawsuit.
Coverage of Medical Expenses
Texas liquor liability insurance covers medical expenses if an insured sustains an injury as a result of their involvement with the insured business.
The policy will cover any related medical and legal fees incurred due to the accident or incident. The insurer will also assist with filing claims and advise their clients on handling each situation best.
Peace of Mind
Having Texas liquor liability insurance provides peace of mind because it protects you from financial losses that may result from a lawsuit or other legal action. This style of insurance covers the costs associated with defending yourself against claims, such as legal fees, court costs, as well as settlements that may be required.
Liquor Liability insurance also provides coverage for damages awarded by a court or jury in favor of the plaintiff. The amount of coverage will be up to the limit specified in your policy.
Having liability coverage gives you peace of mind knowing that if an accident occurs while serving alcohol at your business, you will have protection from costly lawsuits and legal fees associated with defending yourself against them.
How Much Does Texas Liquor Liability Insurance Cost?
Texas liquor liability insurance costs will vary depending on the type of business or event you want to be covered, how much coverage you need, and your location. In most cases, it can range from $500-$1,000 per year for up to $1 million in coverage.
Frequently Asked Questions
There are many inquiries that we receive on a daily basis in regard to liquor liability insurance. Here are some of the most frequently asked questions that we hear:
Do I need liquor liability insurance if I am a bartender?
You should always consider purchasing liquor liability insurance as a bartender. Should any legal issue arise, this coverage will protect you from any legal fees associated with defending yourself against a claim.
I am hosting a private party at my home. Do I need liquor liability insurance?
If you are having a party with alcohol in your home in Texas, you must ensure you have liquor liability insurance in place. Acting as a safeguard, it will protect you if someone gets injured or sick after drinking at your party.
It is essential to know that your homeowner’s insurance policy will not cover these events. You need to purchase a separate policy to be fully protected.
Are there risks of not having liquor liability insurance?
You could be liable if you do not have liquor liability insurance and someone gets injured or sick after drinking at your party. If this situation occurs, you could be sued and be required to pay damages. If a court finds you at fault, your insurance company may also drop you as a customer.
Don’t Risk Your Business With Texas Liquor Liability Insurance
Selling alcohol is a risky business. By understanding the risks involved, you can take steps to protect your business from potential liability claims.
In this article, we explain everything you need to know about Texas liquor liability insurance—from the policy benefits to the risks involved if you decline.
We also provide tips on minimizing the risks associated with running a business that sells alcohol. If you’re ready to start protecting your business, reach out to us at Second Western Insurance!