When it comes to beverages, you’re an expert.
You can recommend the perfect tequila for a refreshing margarita, the right bottle of wine to bring to a housewarming party, and the brews an aspiring craft beer aficionado should start with. After all, that’s why you decided to open your very own liquor store.
But as you embark on your small business journey, you might stumble across a subject that you aren’t an expert in: insurance.
Deciding which types of insurance you need as a liquor store owner can seem an intimidating, complicated process — and making the wrong decisions can have major consequences. That’s why we’ve put together this quick guide to liquor liability insurance.
Keep reading to get answers to all your questions and learn what liquor liability insurance is, why we recommend it, and which providers you should consider.
Do You Need Liquor Liability Insurance?
Let’s cut to the chase: Liquor liability insurance is almost always a good investment if you own a business that sells alcohol.
This industry-specific type of insurance provides coverage for retailers, bars, restaurants, and any other establishment that manufactures, sells, or serves alcoholic beverages. It protects against legal fees, settlements, and medical costs associated with injuries or damages that occur as a result of intoxicated customers.
Now, let’s take a look at some of the specific reasons we recommend that all liquor, wine, and beer shops secure liquor liability insurance before their grand opening.
1. Stay Compliant With the Law
Investing in liquor liability insurance is a smart decision for any savvy liquor store owner, but in some states, you might not have a choice.
Most states require any business that sells or serves alcohol — including brick-and-mortar liquor stores — to have a certain level of liquor liability coverage. Often, these states mandate that certain incidents be covered, including “slip and fall” accidents, assaults, and DUIs.
Failing to secure liquor liability insurance in these states can lead to the loss of your store’s liquor license and even the closure of your business.
2. Protect Your Liquor Store From Lawsuits
The biggest reason to invest in liquor liability insurance is that it protects your store from lawsuits.
For example, if someone purchases alcohol at your store, becomes inebriated, then causes an accident resulting in physical harm or property damage, your business could be on the hook.
The right liquor liability insurance policy will protect your store from the cost of going to court or any settlement fees resulting from the suit.
3. Safeguard Your Business’ Reputation
Liquor liability insurance doesn’t just protect your liquor store from the financial impact of lawsuits; it also protects your reputation as a business owner.
In the event of an incident, insurance coverage goes a long way in managing negative publicity and keeping your business in good standing with the community. It shows that you’ve done your part to protect your community — as long as you still have safeguards in place to prevent underage sales and sales to intoxicated customers.
4. Have Peace of Mind
Opening and operating a liquor store is a massive undertaking. You’re responsible for stocking the shelves with the right spirits, providing excellent customer service, and managing your team.
With all these tasks on your to-do list, the last thing you need is to worry about a lawsuit.
Liquor liability insurance provides peace of mind, so you can fully focus on connecting with your customers and growing your business.
3 Liquor Liability Insurance Providers We Recommend
Liquor liability insurance is a must-have — even if you aren’t legally required to have it. It protects your business from the financial and reputational risks of a lawsuit, and it can put you and your community at ease.
Now, let’s explore your next steps. The easiest way to secure liquor liability insurance is through the same insurance provider you already use. You should be able to work with the same broker and add liquor liability coverage to your existing business liability policy.
If you don’t already have a general liability policy or simply want to work with a different provider, here are three options to look into:
- Progressive Commercial is an insurance provider offering coverage to businesses nationwide. They offer liquor liability insurance to restaurants, bars, grocers, and liquor stores.
- The Hartford offers car, home, and business insurance policies. Along with their liquor liability coverage, they offer a wealth of insights into why and how you should secure this type of insurance.
- Insurance Canopy is a provider promising to make business insurance coverage easy. You can secure their liquor liability coverage for just over $35 monthly.
Whichever provider you choose, make sure to get several quotes and look for the highest level of coverage to get the best deal.
Get Liquor Store Peace of Mind With Bottle POS
Just like the right insurance provider can make a world of difference for your business, so can the right point of sale (POS) provider.
A powerful liquor store POS solution like Bottle POS can protect your business from underage sales, inventory disasters, and stagnating sales with features like built-in age verification, robust inventory management tools, and sales-boosting options like flexible promotions and a customer loyalty program.
Whether you’re just starting your liquor store journey or an industry veteran, our software is designed to help you operate more efficiently and profitably.
Get started with Bottle POS by scheduling your live demo with one of our liquor store experts.
