Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for liquor retailers.
This article will discuss the primary insurance coverage for liquor shops, general liability insurance, as well as additional policies that are appropriate for this industry.
Liquor Store General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Common Situations That A Liquor Store’s General Liability Insurance May Cover
Example 1: A consumer is standing under an unsteady shelf unit at your liquor shop. The shelf starts to sag, and a huge glass bottle of booze falls to the floor, striking the client in the head and suffering a major concussion. The consumer sues your company, saying that he has suffered from occasional dizziness and stomach pain on a regular basis since the accident. If you are held accountable for this consequence, general liability insurance should cover any ensuing court payments or settlements to the consumer.
Example 2: An elderly client tries to take a six-pack of bottled beer from your refrigerator. She strains to get it from a lower shelf, injuring her back and spilling the beer on her foot. She chooses to sue your company, claiming that the accident has disrupted her own little gardening business for the remainder of the season. If you are held accountable, the court will most likely pay a settlement or damage estimate for your liquor shop.
Example 3: You decide to draw more attention to your business by erecting a giant neon sign above your doors that is visible from the surrounding street. The bright new sign distracts a car who often passes by your shop. He swerves into the oncoming lane, almost colliding with another fast automobile. Both cars had severe scrapes and broken front corners where they collided. If you are held accountable for your distracting sign, general liability insurance will most likely pay the amount you owe in a lawsuit against your company.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
The typical American liquor establishment pays between $500 and $1,200 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Liquor Store Insurance
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all liquor retailers should have are as follows:
Insurance for Liquor Liability
This policy is always included in a good liquor company strategy. Liquor shops generate money largely from the sale of intoxicating substances, which carries with it the risk of liability. Liquor liability plans cover claims for bodily harm or property damage caused by alcohol usage. Almost every harmful action induced by alcohol use is covered, including automobile accidents caused by inebriated drivers, physical attacks by intoxicated customers, and unintentional self-injuries suffered while consuming alcohol bought from your company.
Insurance for Commercial Property
Product sales determine success in the liquor industry. With the great bulk of your revenues derived straight from these transactions rather than services rendered, it is critical that all stores in your company have inventory coverage. Fires are especially catastrophic to a liquor store because of the combustible goods. Fires and other related events, such as intense storms and water damage from exploded pipes, are covered by commercial property insurance.
Coverage Options for Some Liquor Stores
In addition to the insurance listed above, your liquor shop may need other forms of coverage based on particular features of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance Against Crime
Liquor businesses often function effectively despite having a small staff and a low client presence. The issue is that with few people present, a staff member may easily unlawfully access shop items as well as any on-site cash. Managing a shop safe is usually best left to you, the owner. If this is not always possible, you may choose to provide access to a trusted, long-term employee. Unfortunately, the psychology of stealing is sometimes complicated, and even a trustworthy person may feel forced to take your money if they are in a difficult circumstance.
Between this and your expensive goods, an employee may steal thousands of dollars in cash and inventory. Crime insurance might be an excellent solution for company owners who are concerned about putting their valuables in the hands of employees.
Insurance for Workers’ Compensation
Most liquor shops are run by a small number of staff whose shifts alternate once or twice during business hours. If your company employs people, the insurance will most likely be required to cover claims resulting from workplace accidents. Broken glass from bottles, stocking ladder mishaps, and even robberies during business hours may all lead to worker compensation claims. With this coverage, both your workers and your company are covered against financial damages caused by on-site catastrophes.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.