Liquor Store Insurance Policy Information
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 liquor store insurance policy also applies to individuals who are planning on holding a one-time event where alcoholic beverages will be served.
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.
Below are some answers to commonly asked liquor store insurance questions:
- What Is Liquor Store Insurance?
- How Much Does Liquor Stores Insurance Cost?
- Why Do Liquor Stores Need Insurance?
- What Type Of Insurance Do Liquor Stores Need?
- What Are Liquor Stores Risks & Exposures?
- What Does X Insurance Cover & Pay For?
What Is Liquor Store Insurance?
Liquor store insurance is a type of insurance coverage that is specifically designed for businesses that sell alcoholic beverages./p>
This type of insurance typically includes coverage for property damage, liability, and loss of income as a result of a covered event such as a fire, theft, or natural disaster. It may also include coverage for injuries or accidents that occur on the premises, as well as protection for the business's inventory of alcoholic beverages./p>
Some policies may also include coverage for loss of business due to a liquor license revocation or other legal action.
How Much Does Liquor Stores Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small liquor stores ranges from $77 to $99 per month based on location, size, payroll, sales and experience.
Why Do Liquor Stores Need Insurance?
Liquor stores need insurance for a variety of reasons. Firstly, they are businesses that handle potentially hazardous products such as alcohol. Accidents and spills can occur, and insurance can protect the store from financial liability if someone is injured on the premises or if there is damage to the store or its products.
Additionally, liquor stores also deal with cash and valuable merchandise, which makes them a target for theft. Insurance can cover losses due to theft or vandalism.
Liquor stores also face the risk of being sued if a customer becomes intoxicated and causes damage or injury to themselves or others. Liability insurance can protect the store from these types of legal claims.
Finally, liquor stores also need insurance to protect their employees. Workers' compensation insurance can cover medical expenses and lost wages for employees who are injured on the job.
Overall, insurance is crucial for liquor stores to protect their business, employees, and customers from potential risks and liabilities.
What Type Of Insurance Do Liquor Stores Need?
Liquor stores need insurance to protect against potential risks and liabilities that may arise in the course of their business operations. Some of the types of insurance that liquor stores may need include:
- Liquor Liability: This type of insurance covers damages or injuries that occur as a result of the sale or distribution of alcohol.
- General Liability: This type of insurance covers damages or injuries that occur on the premises of the liquor store, such as a customer slipping and falling on the floor.
- Commercial Property: This type of insurance covers damages to the physical structure of the liquor store and any of its contents, such as inventory or fixtures.
- Business Interruption: This type of insurance covers lost income and expenses incurred if the liquor store has to close due to a covered event, such as a fire or natural disaster.
- Workers' Comp: This type of insurance covers medical expenses and lost wages for employees who are injured on the job.
- Cyber Liability: This type of insurance covers losses resulting from cyber attacks or data breaches, which can be especially important for liquor stores that accept electronic payments or store customer information online.
Overall, it is important for liquor stores to carefully assess their risks and liabilities and ensure that they have the appropriate insurance coverage in place to protect their business.
What Are Liquor Stores 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 non-owned 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.
What Does Liquor Store Insurance Cover & Pay For?
Liquor stores may be sued for a variety of reasons, including the below situations and insurance can help protect the store by providing coverage for any damages awarded to the plaintiff in a lawsuit, as well as legal fees associated with defending against the claims:
Selling alcohol to a minor: If a liquor store sells alcohol to someone under the legal drinking age, they can be held liable for any harm caused by that individual's consumption of alcohol.
Over-serving customers: If a liquor store serves alcohol to someone who is already visibly intoxicated, they can be held liable for any harm caused by that individual's continued drinking.
Selling tainted or expired alcohol: If a liquor store sells alcohol that is tainted or has expired, they can be held liable for any harm caused by the consumption of that alcohol.
Negligent security: If a liquor store fails to provide adequate security and someone is injured on the premises as a result, the store can be held liable.
Defective products: If a liquor store sells a defective product, such as a bottle of alcohol that explodes, causing harm to the consumer, the store can be held liable.
Overall, insurance can protect liquor stores from financial losses resulting from lawsuits by providing coverage for damages awarded to plaintiffs and legal fees associated with defending against claims. It's important for liquor store owners to carefully consider their insurance needs and ensure that they have adequate coverage to protect themselves in the event of a lawsuit.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5921 Liquor Stores
- NAICS CODE: 445310 Beer, Wine and Liquor Stores
- Suggested Workers Compensation Code(s): 8017 Store - Retail NOC
Description for 5921: Liquor Stores
Division G: Retail Trade | Major Group 59: Miscellaneous Retail | Industry Group 592: Liquor Stores
5921 Liquor Stores: Establishments primarily engaged in the retail sale of packaged alcoholic beverages, such as ale, beer, wine, and liquor, for consumption off the premises. Stores selling prepared drinks for consumption on the premises are classified in Industry 5813.
- Beer, packaged-retail
- Liquor, packaged-retail
- Wine, packaged-retail
Liquor Store Insurance - The Bottom Line
Liquor liability insurance is one of the most important liquor store insurance. 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.
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
- Coffee Shop
- Concession Stand
- Farmers Market
- Grocery Store
- Ice Cream Shop
- Internet Cafe
- Liquor Liability
- Liquor Store
- Sandwich Shops
- Specialty Food And Restaurants
The food service industry is a vital part of the economy and plays a crucial role in providing food to individuals and businesses. However, it is also a high-risk industry that is prone to numerous potential liabilities and risks. That's why it's important for food service businesses to have insurance in place to protect themselves against financial losses and legal issues.
One of the main reasons the food service industry needs commercial insurance is to protect against liability claims. When running a food service business, there is a risk of someone getting sick or injured due to food poisoning or food allergies. Insurance can provide coverage for these types of claims, helping to cover the costs of legal fees and damages.
Another reason the food service industry needs insurance is to protect against property damage. This can include damage to the business's physical location, such as from a fire or natural disaster, or damage to equipment, such as kitchen appliances. Commercial insurance can help cover the costs of repairs or replacement, ensuring that the business can continue to operate smoothly.
Additionally, commercial insurance can provide coverage for losses due to unexpected events, such as theft or vandalism. This can be especially important for food service businesses, as food products and equipment can be expensive to replace.
The bar and liquor industry is highly susceptible to accidents and injuries. With the presence of alcohol, there is a higher risk of slip and fall accidents, fights, and other mishaps that could result in serious injuries to employees or patrons. Insurance can provide coverage for these types of incidents and help protect the business from financial liability.
In summary, business insurance is essential for the food service industry due to the numerous risks and liabilities that can arise. It can provide financial protection against potential losses and legal issues, helping businesses to operate safely and securely.
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.