No matter what kind of small business you have, if it is in the food and beverage industry, it is likely you need liquor liability if you sell alcohol. Here's what you need to know:

What Is Liquor Liability?

Liquor Liability, often known as dram shop insurance, is specifically liability insurance for any business that serves, manufactures, distributes, or sells alcohol.  The coverage that liquor liability offers can greatly differ depending on the policy in question and what type of coverage has been sought after.

For instance, consider the following real cases in which coverage has occurred:

• Someone is served alcohol and then later gets into a car accident
• A fight occurs on premise
• Another type of injury occurs, such as a patron following off a bar stool and then hitting their head

As one can see, liquor liability offers many different avenues of coverage.  It is designed to protect the small business in question; not only in terms of asset protection, but future losses and potential lawsuits as well.

Do I Need Liquor Liability?

If you sell alcohol, then you should!  Did you know that if your liquor sales are above 50%, then you need liquor liability insurance aside from general liability.  This can be pricey, but consider the fact that: 

Liquor liability insurance helps to mitigate the risk.

It's singular purpose is to ensure that you are covered, and should something go wrong - you remain covered!   Even if you have not yet hit that 50% range, if you are a business that sells alcohol at all, it may be a viable solution to simply get liquor liability in order to best protect your assets.