New Jersey Liquor Store Insurance Policy Information
New Jersey Liquor Store Insurance. Any establishment that sells spirits or any other type of alcoholic beverage needs liquor store insurance. Liquor store insurance is a policy that protect stores from any third party claim arising from an injury or accident brought about by someone who was intoxicated after consuming liquor brought from that store.
Package liquor stores sell many types of bottled and packaged alcoholic beverages, including wine and beer, for off-site consumption. Kegs of beer may be available. Sources can be domestic or imported.
Operations must be licensed for the items sold. Sales may be limited to liquor and alcohol only, or the store may also sell soft drinks, nonalcoholic mixers, snacks, lottery tickets, or gift items. Some items may be offered refrigerated for the convenience of customers. Package liquor stores are often open until the early hours of the morning. They may be privately owned, corporately owned, or owned and operated exclusively by the state government.
This type of insurance is not limited to providing coverage for liquor stores. It also applies to bars, taverns, and even restaurants that sell alcoholic beverages on a regular basis, as well as to event organizers, wedding coordinators and event managers. The New Jersey liquor store insurance policy also applies to individuals who are planning on holding a one-time event where alcoholic beverages will be served.
New Jersey liquor store insurance protects your shop from lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Why You Need Liquor Store Insurance
Insurance Is Required By Law: While states differ in how they enforce liquor regulations, most states require establishments that sell alcohol to have liquor insurance. The difference lies in how much the insurance policy costs. States that have pretty rigid laws and enforcement when it comes to liquor sales and consumption may also require policies have higher limits and can cost more. Other instances when this insurance is required by law would be if the proprietor has taken out a large business loan or if the liquor establishment is leasing space. Insurance in both cases may be required, even in states that do not legally mandate liquor store insurance.
NJ Liquor Store Insurance Gives You Peace Of Mind: Knowing that any type of liability arising from your trade is covered by New Jersey liquor store insurance gives you the freedom to focus on growing your business. Any lawsuit or claim can be a huge distraction for any business owner. Having insurance assures you that your business won't bear the brunt of the consequences of any injury or damage that is caused by your customers that you have no control over. Knowing that you are covered from this type of liability can help you sleep better at night.
Helps Protect You From Unruly Patrons: Alcohol lowers inhibitions and alters a person's behavior. This is the reason why brawls and accidents are common in places where people go to consume alcoholic beverages. In cases like these, injuries to innocent bystanders and complaints from other customers imposes the liability on the establishment. In other cases, inebriated customers that need to be escorted out may try to sue the bouncers of the establishments especially if they think they were unjustly booted out or handled roughly.
Having a NJ liquor store liability insurance policy that includes assault and battery coverage can protect the establishment from the effects of complaints like these. It is also wise to choose a policy that covers employees as patrons. This is because in most drinking establishments, employees may drink on the job, even if company policy forbids them from doing so. Including employees means that you can be covered for damages caused by or affecting employees.
Liquor Store Insurance Can Get You Better Premiums: Insurance companies that offer liquor insurance often hold trainings for policy holders and those who complete the training can become eligible for discounts on their premiums, or they may be eligible for a premium reduction. This can produce significant savings for any establishment especially if you are paying multiple premiums at a time.
Provides Coverage For Legal Fees And Costs: In the event the complaints eventually result to cases being filed in court, New Jersey liquor store insurance also offers coverage for defense fees and other court costs. Without insurance, legal fees can mount up and significantly affect the business. It is not uncommon for business establishments to eventually close down despite winning a case because they just couldn't handle all the resulting legal fees without insurance. Liquor liability can help cover court costs so your business can stay afloat during and after litigation.
New Jersey Liquor Store's Risks & Exposures
Liquor liability exposures are from selling liquor to underage individuals and those already intoxicated as there should be no on-premises consumption of alcoholic beverages. Failure to comply with state and federal regulations can result in the loss of a liquor permit which will close the business. There must be a set procedure to check ages of anyone attempting to purchase alcohol. Employees must be trained to recognize signs of intoxication.
Premises liability exposure comes from slips and falls due to public access to the premises. All goods should be kept on easily reached shelves so that customers do not pull items down on themselves. Floor covering must be in good condition, with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. During inclement weather, snow, mud, and water will be continually tracked into the store by customers.
Housekeeping should be excellent and spills must be cleaned up promptly, with warning signs posted after mopping. Sufficient exits must exist and be well marked, with backup lighting systems in case of power failure. Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level and free of exposure to slip and falls. Customers can be injured or killed during a robbery.
Security of visitors in parking areas is rapidly becoming the responsibility of the owner or operator of the premises. Outdoor security and lighting must be consistent with the area. Personal injury exposures such as assault and battery or wrongful ejection can arise from refusing service to belligerent or intoxicated customers.
Products liability exposure for package stores is normally low, as long as reputable manufacturers make all liquor that is sold.
Workers compensation exposures are very high due to heavy lifting and robberies. Improper lifting can cause back injury, hernias, sprains, or strains. Floors may become slick, resulting in slips and falls. Anhydrous ammonia refrigerants are poisonous when leaked into confined spaces such as coolers. Controls must be in place to maintain, check, and prevent such injury. Cleaning staff can develop respiratory ailments or contact dermatitis from working with chemicals.
Employees should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available to assist with heavy lifting. Injury or death during holdup is a major cause of loss. Employees should be trained to respond in a prescribed manner. Often, there are defensive tools available to the employees such as pepper spray, baseball bats, or guns.
Proper training in the use of implementations for self-defense that is provided or permitted is essential. Employee turnover may be high. Company incentives to encourage long-term employment are positive signs of management control. Workers must also be able to deal with unruly customers.
Property exposures are moderate from electrical wiring, refrigeration units, and heating and air conditioning systems which can tax the electrical system. The wiring must be adequate and up to code. Due to its combustibility, an ammonia detection system should be in place if ammonia is used as a refrigerant. A fire can often cause a total loss because alcoholic beverages are highly flammable and susceptible to damage from heat and smoke. Even a small fire can cause all stock to be condemned due to contamination from smoke and firefighting materials.
Theft is a major exposure as alcoholic beverages can be expensive and are easily resold. Appropriate security measures should be in place, such as keeping more expensive items behind the counter and inaccessible to customers. Security mirrors should be prominently displayed throughout the store. Premises alarms should report to a central station or police department. A panic alarm for hold-ups is advisable.
Equipment breakdown exposures can be high if operations are dependent on refrigeration equipment.
Crime exposures from employee dishonesty and theft of money and securities are very high. The inventory is attractive to employees as they can steal it and resell it for personal profit. Background checks should be conducted on all employees. The inventory must be under the supervision of more than one individual so that there are checks and balances. All orders, billing, and disbursements must be handled as separate duties. Regular audits must be conducted.
If there is a 24-hour exposure or late night/early morning hours, package stores can be a target for holdup because of the significant cash on hand. Money should be regularly stripped from the cash drawers and moved to a safe away from the front of the store. Irregular drops are helpful in preventing a large buildup of cash. Closing time is the most vulnerable time so security procedures should be in place to prevent hold-ups.
Inland marine exposures can include accounts receivables from billings to customers, computers for tracking inventories and sales transactions, signs, and valuable papers and records for suppliers' information. Backup copies of all records, including computer records, should be made and stored off premises.
Commercial auto exposure may be limited to hired or nonownership liability exposures from employees using their vehicles to run errands. If delivery services are provided, only company vehicles should be used. Drivers must have appropriate licenses and acceptable MVRs. Vehicles should be properly maintained and records retained.
NJ Liquor Store Insurance
Liquor liability insurance is one of the most important types of insurance that a liquor store owner can buy. With this in place you can rest assured that your business is shielded from the financial repercussions of complaints, damages and injuries that arise from the actions of drunken patrons. Don't leave your store unshielded from potentially damaging claim.
New Jersey Economic Data & Business Insurance Requirements
If you are considering opening a business in NJ, it is important to be aware of the economic status of that location. It is also important that you are aware of the regulations related to the commercial insurance that you are required to carry.
If you are thinking about starting a business in the State of New Jersey, keep on reading to find out some key information about the economic status of the state, as well as the rules for commercial insurance. With this information, you will be able to put your best foot forward so that you can make the best choices in the Garden State.
Economic Trends In New Jersey
Currently, New Jersey is ranked 46th in the country in terms of its economic position as compared to other state. While the economic growth may be slower in this state than in other locations, this is largely due to the high taxes. Nevertheless, there are still opportunities for entrepreneurs.
There are several industries that are expected to see growth in NJ in the 2022 calendar year. Some of these industries include:
- Information Technology
- Service Industries
New Jersey Commercial Insurance Requirements
The New Jersey Department of Banking and Insurance regulates the insurance industry In NJ. Just like most states in the country, New Jersey business owners are legally required to carry workers comp insurance. If you employ any type of staff, whether it's full-time or part-time, or hourly or salaries, you must carry this type of coverage. You must also provide your employees with disability coverage in the event that they are injured or become ill on the job. Additionally, New Jersey business owners are legally required to carry commercial auto insurance if they use a vehicle to conduct any type of business.
Commercial liability insurance and commercial property insurance are not required in this state; however, it is still a wise idea for business owners to invest in these types of policies. They can offset the costs that are associated with property loss or with any lawsuits that may arise as a result of doing business.
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
- Ice Cream Shop
- Internet Cafe
- Liquor Liability
- Liquor Store
- Sandwich Shops
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 New Jersey Liquor Store insurance quote in Asbury Park, Atlantic, Bayonne, Beachwood, Bellmawr, Bergenfield, Bound Brook, Bridgeton, Camden, Carteret, Cliffside Park, Clifton, Collingswood, Dover, Dumont, East Orange, Eatontown, Edgewater, Elizabeth, Elmwood Park, Englewood, Fair Lawn, Fairview, Florham Park, Fort Lee, Franklin Lakes, Freehold, Garfield, Glassboro, Glen Rock, Gloucester, Guttenberg, Hackensack, Haddonfield, Hammonton, Harrison, Hasbrouck Heights, Hawthorne, Highland Park, Hillsdale, Hoboken, Hopatcong, Jersey, Keansburg, Kearny, Kinnelon, Lincoln Park, Linden, Lindenwold, Little Ferry, Lodi, Long Branch, Madison, Manville, Metuchen, Middlesex, Millville, Morristown, New Brunswick, New Milford, New Providence, Newark, North Arlington, North Plainfield, Oakland, Ocean, Palisades Park, Paramus, Passaic, Paterson, Perth Amboy, Phillipsburg, Pine Hill, Plainfield, Pleasantville, Point Pleasant, Pompton Lakes, Princeton, Rahway, Ramsey, Red Bank, Ridgefield Park, Ridgefield, Ridgewood, Ringwood, River Edge, Roselle Park, Roselle, Rutherford, Sayreville, Secaucus, Somers Point, Somerville, South Plainfield, South River, Summit, Tenafly, Tinton Falls, Totowa, Trenton, Union, Ventnor, Vineland, Wallington, Wanaque, West New York, Westfield, Westwood, Woodbury, Woodland Park and all other NJ cities & New Jersey counties near me in The Garden State.
Also find NJ local small businesses by General Liability Class Code and learn about New Jersey small business insurance requirements for general liability, business property, commercial auto & workers compensation including NJ business insurance costs. Call us (609) 277-2744.