Negosentro.com | 5 Questions to Ask When Seeking Insurance for Your Liquor Store | Liquor store owners face a variety of risks each day by operating their business and hiring workers. Liability protection is necessary to prevent business owners from facing serious financial losses. Starting a liquor store might provide an exciting new business venture, but without proper coverage business owners might lose it all. Reviewing 5 questions to ask when seeking insurance for a liquor store helps business owners make sound decisions about coverage.
1. Why is Property Insurance Vital?
Property insurance covers the property itself and items that the business owner stores inside the property. For liquor store owners, the policies protect them against a total loss of the business property and their in-store inventory. The insurance covers fires, vandalism, and natural disasters. Some policies provide coverage for burglary and theft. If the property is damaged because of a covered event, the owner files an insurance claim. The claim covers repairs and reconstruction of the property. The replacement of the store’s inventory is offered through commercial property insurance, and some policies provide a replacement for cash that is stolen.
After a claim is filed, the property owner must wait for a claim’s adjuster to inspect the property and process the claim. Once the claim is approved, the business owner receives a lump sum payment. The terms of the policies might require the owner to board up the property after a fire or natural disaster. If the property is damaged after a burglary, the insurance policy pays for repairs and new locks when necessary. To review commercial property insurance, business owners can visit charlesriverinsurance.com for more information now.
2. Why Do You Need Liquor Liability Coverage?
Liquor liability insurance protects establishments that serve alcoholic beverages in case of altercations that lead to patron-related injuries or property damage. The insurance provides payments for medical expenses incurred by the patrons and any property damage that resulted from the altercation. In larger cities, there is a greater risk of patron-related injuries because of alcohol consumption and drunkenness. Establishment owners might need a liquor liability insurance policy that offers a higher payout.
Dram shop laws apply to establishments that sell and/or serve alcoholic beverages. The dram shop laws hold store owners liable if a patron left the establishment while intoxicated and caused personal injuries or property damage. For this reason, the protocol for selling alcoholic beverages places the stress on the shoulders of the owner or clerk. The owner or clerk must make snap decisions as to whether or not the patron is too intoxicated to purchase alcoholic beverages. Liquor liability insurance coverage protects the store owners against legal claims based on dram shop laws. Without adequate coverage, the store or bar owner could face financial losses that shut down their business altogether.
3. What Does Commercial General Liability Insurance Cover?
Commercial general liability insurance protects against liabilities that could occur inside or outside the commercial property. Commercial property owners purchase the coverage to protect against slip and fall injuries, premises liabilities, and legal claims for breach of contract and property damage. The purpose of the insurance is to protect the business owner against financial losses because of legal claims. Visitor or customer injuries often lead to legal claims if the individual is injured more severely.
Product liabilities are a major concern for manufacturers. If a consumer becomes injured while using a product, the manufacturer becomes the defendant in a lawsuit. The Consumer Rights Protection Agency gets involved if more than one consumer sustains injuries. The federal agency can issue product recalls, too. Although the liquor store won’t face an immediate liability, their vendors might. Any liquor products that are subject to a product recall must be removed from the store shelves and cannot be sold to anyone. If the store owner sells recalled liquor, the owner faces a serious liability.
4. Is Worker’s Compensation Insurance Required?
Worker’s compensation insurance is required by federal for all businesses that employ more than one worker. The insurance coverage provides payments for medical expenses and wage replacement for injured employees. The medical payments are provided for all treatment required for the on-the-job injuries. Wage replacement is available for qualifying employees who cannot return to their job because of their injuries. The replacement payments offer up to 80% of the worker’s wages until the worker has recovered completely.
The human resources manager at the business must complete forms for the injured worker and send the worker to an urgent care facility or emergency room. The doctor completes medical reports and sends the reports to the insurer. A claims adjuster reviews all the information and determines if the worker qualifies for ongoing care or wage replacement payments.
Without insurance coverage, the employer is in violation of the law. However, if the insurer denies a claim for any worker who qualifies for benefits, the employer could face a legal claim. The employer must have additional policies to cover their liabilities related to accidents and premises liabilities.
5. How Can Cyber Liability Insurance Help Your Business?
Cyber liability insurance covers liability associated with data security breaches and identity theft. The policies assist customers in getting back any funds lost during or because of a data breach. Businesses face serious liabilities if any customer’s financial data is stolen through their database or point of sales terminals. The insurance claims are filed whenever a breach is detected, and customer data has been stolen. The origin of the breach is traced, and law enforcement is notified of the break. The business must contact all customers who are involved in the security breach.
Liquor store owners review insurance policies for protecting their business, workers, and property. The right combination of policies protects against financial losses, property loss, and liabilities related to selling or serving alcohol. The property owners need commercial property coverage to protect their property and on-site inventory. If the owner hires workers, they need worker’s compensation coverage. Liability coverage protects against premises liabilities that could apply to the establishment. Evaluating risks that a liquor store could face helps the owner identify what policies are best suited for the business and provide the highest level of protection.
