The nightclub and bar industries are undoubtedly lucrative ones. If you’re the type of person who loves socializing, staying up late, and following the hottest trends in hospitality, the nightclub industry seems tailored just for you. However, with nightclub ownership inevitably comes the liquor liability concerns. While serving alcohol is a major money-maker in this sector, it comes with inherent risks and a lot of potential for liability claims. Therefore, carrying a NM Liquor Liability Insurance policy, as part of a comprehensive Hospitality Insurance Program, is a must. Even if you’re working with a limited budget, these staggering statistics are enough to make you think twice about making this coverage an afterthought.
With the risks you face without liquor liability coverage, foregoing this insurance altogether is counter-productive. If you’re found to be at fault for injuries and damages caused by a drunk driver you served, you will be held liable for all ensuing expenses. Even if your nightclub has enough cash in reserves, this could wipe it out completely. Or, worse, your business could go bankrupt in an attempt to pay all of the legal fees associated with these incidents. Another point to consider is your reputation. If you’re able to pay your legal fees successfully, you will likely still face reputational damage, which can also be a huge blow to your income.
Next, consider the dram shop laws in your state. These laws require that bars and nightclubs be held responsible for over-serving drunk patrons who cause injury or damage to another. If you think your state’s laws work in favor of your business, think again!
Many alcohol-related claims against bars stem from fights between intoxicated patrons, explains Insurance Journal. One claim could result in years of litigation and fines, loss of income, reputational damage, and fees.
One last important note is that general liability policies do not cover these damages. While a general liability policy is also a must for nightclub owners, getting a policy specifically tailored to your liquor serving risks is your first line of defense against claims.
About Daniels Insurance Agency
Daniels Insurance Agency is poised to help you navigate the risks you face today while assisting you with solutions and strategies to support your business as it expands and grows. We are also an integral part of the communities we serve, understanding the issues of our region to effectively serve our business and individual clients. Give us a call at 800-530‑8885 to find out how we can assist you.