Arkansas Liquor Liability Insurance Policy Information
Arkansas Liquor Liability Insurance. Everyone knows that too much booze is never a good thing. It can result in you saying something you don't mean. Lead to you injuring yourself - or others. It can even result in death from alcohol poisoning or a serious accident. In a legal case like an accident involving alcohol, the intoxicated person is usually held liable for their actions. What about the people who were serving them, though? Can they be held accountable for not cutting people off sooner? Can you hold them liable?
The answer is Yes. Most major events and entertainment hotspots that serve alcoholic beverages may be held responsible for the unlawful actions of intoxicated customers. To cover liabilities, the owners of these entertainment spots usually take measures to limit their risk of liability, but they will still need to protect their business with a suitable Arkansas liquor liability insurance policy.
Arkansas liquor liability insurance protects your establishment or event from unlawful actions of intoxicated customers with rates as low as $37/mo. Get a fast quote and protect business now.
AR Legal Liability Insurance
The Commercial General Liability Coverage Form specifically excludes liquor related losses if your business sells, manufactures, distributes, serves, or furnishes liquor. In addition, many insurance companies exclude liquor coverage by endorsement for any operation that regularly serves liquor on or off premises, even though they are not considered "in the business." If your business has a liquor exposure - Liquor Liability Coverage is a must.
This insurance provides coverage for bodily injury or property damage for which you may become legally liable as the result of contributing to a person's intoxication. This coverage is provided by a separate policy and will only cover establishments 'in the business of' manufacturing, selling, distributing, or serving alcoholic beverages for a charge.
The language of Arkansas liquor liability insurance policies can vary, but in general - the insurance company agrees to pay amounts you become legally obligated to pay as damages because of liquor-related injury that this insurance covers. The liability must be imposed because of injury caused by someone to whom you sold, served, or furnished alcoholic beverages. The insurance company also defends you against any suit that seeks damages but only if the coverage provided applies to the damages claimed.
Am I Covered If I Serve Alcohol Offsite?
This oversight is common when buying Arkansas liquor liability insurance, so you should not assume that your policy protects you from liabilities resulting from liquor served offsite. Often, a catering add-on can be included to your coverage to give protection for offsite service. Before you pop a single beer away from your premises, you need to know for sure if your policy includes a catering supplement.
Who Needs Liquor Legal Liability Insurance?
Any AR establishment that serves alcoholic beverages, since it's exposed to law suits charging that they served liquor to intoxicated persons who was later involved in an accident. Service businesses like restaurants, hotels, taverns, sports bars, package stores, halls and private and fraternal clubs, nightclubs, riverboat casinos, bowling alleys, special events and even bed and breakfasts, are common businesses than need liquor legal liability insurance.
Buying Liquor Liability Insurance
Insurance for bars, taverns, and night clubs require a more complex scope of coverages than your standard restaurant policy. When written incorrectly, there can be important coverages left out and possibly major exclusions, leaving your business and personal finances at risk.
Ensure your policy includes 'Assault and Battery Coverage'. Many claims against bars and restaurants result from fights. Yet, some of these claims may be excluded by the expected or intended injury exclusion that appears in many liquor liability policies. Fortunately, you can buy back this coverage by purchasing insurance for assault and battery claims. A liquor liability insurance policy that does not cover assault and battery has limited value.
Have Your Heard Of Dram Shop Laws?
Truly understanding what your current liquor liability coverage offers is a vital to the success of any establishment serving or allowing the consumption of alcohol on the premises. 38 US states carry a different set of laws for establishments that deal with alcohol, called Dram Shop laws. These are laws that make businesses that sell alcoholic drinks or hosts who serve liquor to individuals who are obviously intoxicated, strictly liable to other people who sustain injuries caused by the drunken individual.
Manage Your Risk
In addition to purchasing AR liquor liability insurance insurance, businesses need to be proactive in reducing their liquor induced claims. From instructing employees to decline serving alcohol to obviously intoxicated individuals, to demanding strict measuring of all mixed drinks, to pushing for use of designated drivers or taxis, you can lower your likelihood of suffering liquor liability claims by implementing and imposing safe alcohol-serving practices.
Arkansas Economic Data, Regulations And Limits On Commercial Insurance
If you're a business-minded individual who has your sights set on Arkansas for their operations need to take several factors into consideration before they actually start a business. Specifically, they should determine is the conditions are favorable for entrepreneurs in general, and if the conditions are favorable for their specific industries.
No matter how high-quality the goods and services you offer are, if the specific location isn't favorable for businesses - and your specific sector - your corporation is going to have a hard time succeeding.
In this guide, we provide a brief overview of key factors that indicate whether or not Arkansas is a suitable location for your operations. We also cover some of the key commercial insurance policies that business owners are required to carry.
Economic Trends For Business Owners In Arkansas
Unemployment rate is a key factor in determining whether or not a state offers favorable conditions for those who are thinking about starting a business. According to most recent statistics issued by the Bureau of Labor Statistics, as of December, 2019, Arkansas' unemployment rate was 3.6%, 0.2% higher than the national unemployment rate, and 0.2% higher than it was in July of 2019.
However, it is 0.1% more people are employed now than they were in December, 2018, when the rate of unemployment was 3.7%. Despite the marginal increase, economists do predict that the workforce will increase or at the very least remain stable in upcoming years.
As with most states, the best places to start a business in Arkansas are the largest metropolitan areas. This includes Little Rock, Fayetteville, Fort Smith, and Hot Springs. The suburban areas that surround these cities are also good spots to establish a business. Some lesser-known cities are also experiencing economic and employment growth, such as Arkadelphia, Batesville, and Conway.
AR offers ample opportunities for business of all sizes and in a variety of industries. Some of the key sectors include:
- Aerospace and defense
- Forestry and timber
- Information technology
- Transportation and logistics
Commercial Insurance Requirements In Arkansas
The Arkansas Department of Insurance regulates insurance in AR. Arkansas mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Arkansas requires you to have worker's compensation insurance if you have 3 or more employees. In the construction industry, businesses with fewer than three employees must provide workers' compensation. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Arkansas also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Food Service Insurance
Learn about restaurants, bars, liquor stores commercial insurance coverages. See how small business food service insurance help protect against accidents, oversights and lawsuits resulting from business operations.
- Bagel Shop
- Beer Distributor
- Coffee Shop
- Concession Stand
- Farmers Market
- Grocery Store
- Liquor Liability
- Liquor Store
Bars, taverns, restaurants, cafeterias, and other eating and drinking places have significant insurance needs in three separate areas.
The first is property protection for physical damage to equipment, furnishings, building and supplies due to fire and other perils.
The second is premises liability coverage to protect customers due to slips, trips and falls on the premises, as well as for consumption of food products.
The final need is protection for employees due to frequent cuts, burns and other common employee injuries. Establishments that sell or serve liquor or other alcoholic beverages also need liquor liability coverage.
Slips and falls, along with customer illness due to being served tainted food or drink, are the primary liability exposures. The commercial general liability (CGL) is used to provide coverage for these exposures.
It is important to note that liquor liability coverage is excluded under the CGL form if a risk is in the business of serving alcoholic beverages. Many establishments in this category should therefore consider purchasing a separate liquor liability coverage form.
Restaurant kitchen equipment, inventory and dining room fixtures are common exposures for most eating and drinking places. Many of these establishments do not own the buildings they occupy but have long-term leases and have invested money in various improvements and betterments, including cooking equipment, dining room decorations and permanent fixtures.
There are major differences in the food service business and the very different exposures they present. There are many specific types of restaurants to cater to individual needs and tastes. There a several main commercial insurance classifications for food service.
Concessionaires: The most basic "eat on the run" type of restaurant is not classified as a restaurant at all but is referred to as a concessionaire. Class Code 11168: Concessionaires applies and the accompanying note states that all food and beverages must be sold through hawking or peddling. There can be no location to which customers walk up and purchase the food. This classification includes food sold at sporting events, exhibitions, and parks.
Caterers: Are very similar to restaurants with significant differences. The caterer prepares the meals at its own kitchen or commissary and then transports it to the locations where it will be served. Some final preparation may take place at the final location but the majority generally takes place at the caterer's location. The caterer's employees serve the meals and beverages and oversee the consumption of the food.
Restaurants: The way restaurants are categorized and classified uses the percentage of alcoholic beverage sales as the first criteria, followed by other features or operations.
Common to all of these categories is that entertainment-oriented venues such as nightclubs, cabarets, dance halls, discotheques, and comedy clubs must be separately classified and rated. This means that the sales that those entertainment activities generate must be broken out and rated separately from the sale or food and drink.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Spoilage, Equipment Breakdown, Employee Dishonesty, Money and Securities, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Nonowned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivables, Bailees Customers, Fine Arts, Cyber Liability, Employment-related Practices, Environmental Impairment, Liquor Liability, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.
Request a free Arkansas Liquor Liability insurance quote in Alexander and Pottsville, Alma, Arkadelphia, Ashdown, Austin, Barling, Batesville, Beebe, Bella Vista, Benton, Bentonville, Berryville, Blytheville, Booneville, Brookland, Bryant, Cabot, Camden, Cave Springs, Centerton, Clarksville, Conway, Crossett, Dardanelle, De Queen, Dumas, East End, El Dorado, Elkins, Farmington, Fayetteville, Fordyce, Forrest City, Fort Smith, Gentry, Gibson, Gosnell, Gravette, Greenbrier, Greenwood, Harrison, Haskell and Cherokee Village, Heber Springs, Helena-West Helena, Hope, Hot Springs, Hot Springs Village, Jacksonville, Johnson, Jonesboro, Landmark, Little Rock, Lonoke, Lowell, Magnolia, Malvern, Manila, Marianna, Marion, Maumelle, McGehee, Mena, Monticello, Morrilton and Pocahontas, Mountain Home, Nashville, Newport, North Little Rock, Osceola, Ozark, Paragould, Paris, Pea Ridge, Piggott, Pine Bluff, Piney, Prairie Grove, Rockwell, Rogers, Russellville, Searcy, Shannon Hills, Sheridan, Sherwood, Siloam Springs, Southside, Springdale, Stuttgart, Texarkana, Tontitown, Trumann, Van Buren, Vilonia, Waldron, Walnut Ridge, Ward, Warren, West Memphis, White Hall, Wynne and all other cities near me in AR - The Natural State.
Also find Arkansas insurance agents & brokers and learn about Arkansas small business insurance requirements for general liability, business property, commercial auto & workers compensation including AR business insurance costs. Call us (501) 261-6101.