The limitations of commercial general liability

Most businesses rely solely on the cover of a commercial general
liability policy. While the latter has earned the moniker for always
coming through in times of need, it however only works incase of
bodily injury, property damage, etc. The CGL clearly includes a
clause, which relieves it from covering claims that arise out of certain
scenarios. One should thoroughly check the policy and find out its
limitations.

The benefits of liquor liability insurance

You can expect this policy to cover all the types of alcohol related
claims that won’t be covered in a regular CGL policy. You’ll find that it
is written on a basic ISO form. It covers damages that arise out of
alcohol related incidents. Do ensure that your liquor license is an
active one. As the liquor liability coverage excludes all damages that
arise out of the beverage sold from your establishment while your
license was not in effect. Many large insurance companies offer liquor
liability insurance as part of a business insurance package. If your
current general liability insurer does not provide you with this type
of coverage, an agent or broker can certainly help you attain it.

What to look for while shopping

These are some features you should look out for when hunting for a
liquor liability cover.

1. No assault and battery exclusion

Majority of the claims against liquor selling businesses stem from
fights. Strangely, some insurers very discreetly put in a clause that
exempts them from providing cover against any assault or battery
related lawsuit. Any business that primarily earns its revenue from
the sale of alcohol should strictly avoid a policy, which has such an
inbuilt clause.

2. Covering costs outside the limit

The overall cost for defending a liquor liability claim can sometimes
scale over the roof. And the standard ISO form usually also covers
any additional cost that might occur when defending claims. Which
means that the extra lawyer’s fee or any other additional legal
expense won’t drain your limit.

3. Coverage for mental injuries

Some claimants might seek compensation for damages incurred in
non-physical ways such as mental stress and fatigue. And a few
policies out there exclude covering such injuries whereas some
specifically cover them. So, we suggest you look for the latter.

. Rewards for following safety measures

Insurance companies that cater mainly to bars and restaurants might
offer free training programs to policyholders and for employees
under them. On completion of the training program, the policyholder
might be given concessions on the premium amount as a form of
reward.

Lawsuits against liquor selling establishments are more likely to
succeed in some states as opposed to others. For instance a Liquor
Store Insurance in California, which is a one of the more lenient
states when compared to say Massachusetts, may cost significantly
less. So, as a general rule of thumb you can safely assume that the
stricter states, the more costlier the policy. However, it is absolutely
beneficial for the owner and establishment in the long run, and a
wise investment to make due its several benefits.