It is every nightclub owner’s nightmare scenario. A customer drinks too much and later is the cause of a serious car accident. A lawsuit is filed, and the bar is held responsible. Without a comprehensive policy that includes liquor liability for nightclubs, the financial effects on a small business could be devastating.
Dram Shop Laws Heighten the Risk
If you operate a bar or nightclub, you understand that your business is exposed to a unique set of risks. Dram shop laws in most states assert that establishments that serve alcohol are responsible for any damages or personal injuries caused by patrons who become intoxicated.
Dram shop laws often also require that nightclubs acquire liability insurance before applying for a liquor license. But did you know that claims that result from the consumption of alcohol are not covered by your general liability policy?
Read the Fine Print
Don’t take a chance with the financial health of your club. Be sure you carry liquor liability for nightclubs insurance that includes coverage for the following:
- Property damage incurred as a result of alcohol consumed by a nightclub patron
- Bodily injuries caused by the consumption of alcohol by a customer
Some liquor liability insurance does not include coverage for injuries from fights resulting from the consumption of alcohol. Be sure to ask your agent if you need to add assault and battery insurance.