One component of San Francisco business insurance for every business in the Bay Area that sells alcohol can benefit from is a liquor liability policy. State liquor liability statutes (also called dram shop laws) can place responsibility for losses resulting from inebriated patrons and customers on restaurants, bars and other establishments that serve alcohol to intoxicated persons (or to any minor), or sells liquor without a license or after hours.
To defend against liabilities with potentially disastrous consequences, restaurant and bar owners must learn about applicable state laws, purchase adequate amounts of insurance coverage, and implement safe-drinking environments where patrons feel comfortable and state laws are observed.
Any business that sells, serves, manufactures or provides alcohol to patrons or guests under a state license needs a liquor liability policy as part of its overall business insurance portfolio. Liquor liability insurance may be offered as an addition, or endorsement, to a commercial liability insurance policy or as a separate, stand-alone policy, and can cover various risks and costs, depending on the coverage chosen, including:
- Assault and battery liability
- Bodily injury
- Employee use liability
- Legal defense costs
- Mental, emotional, psychological damages, and
- Property damage
Lawsuits are often filed demanding that business owners pay for the damage their customers inflict, which can end up costing thousands, or even millions of dollars, for businesses engaged in selling alcohol.
California liquor liability laws for caffeinated alcoholic beverages
The US Food and Drug Administration (FDA) have been reviewing the safety and legality of newly popular caffeinated alcoholic beverages for the last year. Recently, the FDA issued notices to four manufacturers of caffeinated alcoholic beverages advising them that their products are adulterated in violation of the federal Food, Drug and Cosmetics Act. The products named by the FDA are “Four Loko,” “Joose,” “Max,” “Core High Gravity HG Green,” “Core High Gravity HG Orange,” “Lemon Lime Core Spiked,” and “Moonshot.”
Liquor liability coverage can be purchased at affordable rates
Various policies for liquor liability coverage have different maximums, conditions, exclusions and limitations. Many businesses enjoy preferred premium rates if alcohol receipts account for 25 percent or less of revenue. Additional credits may be granted to policyholders who use ID scanners to confirm the ages of potential drinkers. This is why business owners purchasing San Francisco business insurance often consult insurance professionals for advice before choosing an appropriate insurance plan.