Louisiana Liquor Liability Insurance Policy Information
Louisiana 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 Louisiana liquor liability insurance policy.
Louisiana 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.
LA 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 Louisiana 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 Louisiana 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 LA 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 LA 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.
Louisiana Economic Data, Regulations And Limits On Commercial Insurance
If you are a business-minded individual who is either thinking about starting a new business or who wants to expand an existing business by opening a division in a new state, it's important to choose a location that offers favorable conditions.
In business, it doesn't matter how high-quality the products and services you offer are, if the products and services don't appeal to the market, you likely aren't going to succeed. With that said, if you are interested in starting a business in the state of Louisiana, having a basic understanding of the economic trends is important.
It's also a good idea to know what type of insurance you'll need to carry, as certain commercial policies are compulsory in the state.
Below, we provide an overview of economic trends of the Creole State to determine if it's the right location for your operation.
Economic Trends For Business Owners In Louisiana
Unemployment rate is a good indicator of a state's economy. The lower the unemployment rate, the more advantageous the environment will be for prospective business owners. Unfortunately, the unemployment rate of Louisiana is higher than the national average; as of December, 2019, the rate was 4.9%, which was 1.5% higher than the national average of 3.5% at the same time.
Additionally, the unemployment rate has increased; it was 4.3% in July of 2019, 4.5% in October, and 4.7% in November of the same year. However, despite this, the unemployment rate has decreased in recent years, which does show promise for entrepreneurs who are thinking about starting a business in the state.
The best spots to start a business in LA are large cities and the suburban areas that surround them. The following cities have seen the most significant industrial growth:
- Baton Rouge
- Lake Charles
- New Orleans
Businesses in various industries do well in the state of Louisiana; however, there are specific sectors that are seeing substantial growth. Those industries include:
- Advanced manufacturing
- Commercial fishing
- Crude oil
- Natural gas production
- Software development
- Water management
Commercial Insurance Requirements In Louisiana
The Louisiana Department of Insurance regulates insurance in LA. Louisiana mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Louisiana requires you to have worker's compensation insurance if you hire even one employee on a regular basis or must be approved for self-insurance. 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.
Louisiana 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 Louisiana Liquor Liability insurance quote in Abbeville, Alexandria, Baker, Bastrop, Baton Rouge, Bayou Blue, Bayou Cane, Belle Chasse, Bogalusa, Bossier City, Breaux Bridge, Bridge City, Broussard, Carencro, Central, Chackbay, Chalmette, Claiborne, Covington, Crowley, DeRidder, Denham Springs, Destrehan, Donaldsonville, Eden Isle, Estelle, Eunice, Fort Polk South, Franklin, Galliano, Gardere, Gonzales, Gray, Gretna, Hammond, Harahan, Harvey, Houma, Inniswold, Jefferson, Jennings, Kenner, Lacombe, Lafayette, Lake Charles, Laplace, Larose, Leesville, Luling, Mandeville, Marrero, Meraux, Merrydale, Metairie, Minden, Monroe, Morgan City, Moss Bluff, Natchitoches, New Iberia, New Orleans, Oak Hills Place, Oakdale, Old Jefferson, Opelousas, Patterson, Pineville, Plaquemine, Ponchatoula, Prairieville, Prien, Raceland, Rayne, Red Chute, Reserve, River Ridge, Ruston, Schriever, Scott, Shenandoah, Shreveport, Slidell, St. Gabriel, St. Martinville, St. Rose, Sulphur, Tallulah, Terrytown, Thibodaux, Timberlane, Village St. George, Ville Platte, Violet, Waggaman, Walker, West Monroe, Westwego, Woodmere, Youngsville, Zachary and all other cities near me in LA - The Pelican State.
Also find Louisiana insurance agents & brokers and learn about Louisiana small business insurance requirements for general liability, business property, commercial auto & workers compensation including LA business insurance costs. Call us (318) 232-4100.