In our previous blog post, we discussed general host liability, which provides protection for the serving of alcohol by a non-liquor or cannabis-related business. If your company is directly alcohol-related, and is involved in manufacturing, selling or serving alcohol or cannabis, then host liquor policies under general liability insurance usually won’t protect you against claims. Fortunately, there is commercial insurance for Liquor Liability that will provide coverage to protect you from potential financial losses.
When liquor consumption occurs in social settings, it can increase exposure to risks. The fast-growing number of craft breweries and the legalization of cannabis businesses add to the risk complexities. Additionally, in Alberta and other provinces across Canada, restaurants can establish Bring Your Own Wine (BYOW) policies.
If your establishment offers activities that mix liquor service with physical participation, such as mechanical bull riding, axe throwing, bowling, or pedaling brewery tours, than it is even more important that they are controlled and regulated.
The odds of facing a claim related to alcohol can vary depending on the type of establishment you wish to insure. Risks are higher in establishments that rely heavily on liquor consumption sales – such as bars, pubs and nightclubs. Restaurants and other establishments typically fall into the lower-risk category. Factors such as the total percentage of liquor sales and how much an establishment charges for the average drink can also affect the cost of liquor liability.
Even with liquor and cannabis liability coverage in place, it is beneficial for businesses to take an active view toward loss control by strictly enforcing polices such as monitoring and limiting alcohol consumption, and ensuring bartenders are well-trained and have up-to-date certification. Be proactive, know your business, and help reduce the financial liability that you could face as a result of selling alcohol by having liquor liability coverage.
If you are unsure of what your policy covers, or for any more questions you may have about liquor and cannabis liability insurance, speak to one of the experts at Fuse Insurance.
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Fuse Insurance Ltd. is the evolution of the commercial insurance brokerage, and the first of its kind in Western Canada. Backed by policies from a selection of A-rated insurers, Fuse Insurance can provide coverage for businesses large and small from almost any industry. For further information or to get an online quote now, click here or call us at 1-866-387-FUSE (3873) for more details.