What is Liquor Liability Insurance?
Over intoxication can lead to poor judgments and accidents, which sometimes involve personal injury or property damage. In Vermont, if an establishment is found responsible for enabling a customer to become so drunk that they cause injury or damage, the establishment might be held financially responsible for the incident and sued. Liquor liability insurance helps protect businesses from this potential risk.
Liquor liability insurance is a narrowly defined form of commercial liability insurance. It helps protect businesses that sell alcohol from liability lawsuits arising from alcohol-related incidents that their customers are involved in. Policies generally cover both property damage and personal injury claims, and they normally help pay both legal defense fees and settlement amounts of covered lawsuits.
Do Establishments with Liquor Liability Coverage Still Need to Check Customers’ IDs?
Businesses that sell alcohol directly to consumers ought to check customers’ IDs regardless of how robust a business’ liquor liability coverage is. Not only is it illegal to sell alcohol to minors, but doing so can negate all liquor liability protections that a policy provides. Many policies have clauses that clearly state their protections will be voided if alcohol is sold to someone who’s underage. Checking IDs is an efficient way to ensure all customers are of legal age to drink before selling them an adult beverage.
