What happens if you don’t insure your business?
Many liquor license owners do not have liquor liability insurance, even though they risk losing their business — or more — by being uninsured. So why do they do it? Here are some of the most common excuses we hear:
All of the assets are in my wife’s name. It is still a common practice for a bar owner (bar owners are predominantly men) to put ownership of his assets in his wife’s name. This used to be sufficient to protect your business. Today, you could be charged with fraudulent conveyance and still lose all of your property.
We don’t serve anyone who is drunk. How can you tell whether someone is drunk? In court, it could be your word against someone else’s whether your patron showed signs of intoxication. Many people don’t show signs of intoxication until they reach levels of 0.15 percent — nearly twice the legal standard.
I can’t afford it. Liquor liability coverage costs less than ever, especially if the insured qualifies for our preferred liquor rates. In some cases, you can buy coverage for as little as a few hundred dollars a year.
I don’t need it. Your business is your livelihood. What would you do without it? You insure your home, so why wouldn’t you insure your business?
We’re a neighborhood bar. Just because most of your patrons live near your bar, it doesn’t mean you’re immune from liability. Anyone can sue anyone today.
My bartenders know when to stop serving. If bartenders knew when to stop serving, bar owners would never be sued. How often do your bartenders turn away patrons who have had too much to drink?
My customers would never sue me. Your customers would have to like you an awful lot to pass up the opportunity to make hundreds of thousands of dollars — or even millions — from a lawsuit. Want to find out how much your customers really like you? Wait until someone gets hurt.
My business isn’t worth insuring. The business you operate may be worth more than you think. A liquor license alone could be worth six figures. There’s nothing to prevent someone from going after your personal assets as well.
My customers can hold their liquor. Patrons who can “hold their liquor” are typically heavy drinkers — and are most likely to be involved in a major accident.
I’m protected by the corporate veil. The “corporate veil” is being pierced with increased frequency. If someone who is intoxicated or who is a minor injures someone or is injured after being in your bar, you could lose everything you own.
I’ve always been lucky. If you’re lucky enough to survive without insurance, you don’t need to operate a bar. Play the lottery. There are easier ways to make a living.
For more information or to obtain a quote, click here to send us an inquiry or contact one of our Premium Insurance Partners here to discuss coverage.