Liquor stores can be found throughout the United States, particularly in densely populated towns and cities. It is a business type that enjoys a steady rate of income, as the industry is relatively unaffected by changes in the economy. Need help in Knoxville? If you own a beer, wine or liquor store, you will want to be sure to protect your business assets with a sound commercial insurance package. An independent agent can help you build a liquor store portfolio that is designed to cover the unique exposures faced by your business. Do you require insurance for a tobacco store?
Cover Your Liquor Store With Sufficient Property Insurance
The physical property you keep in your liquor store holds a lot of value, so it is important that it all be properly insured against loss and damage. Some property insurance types that you may want to discuss with your independent insurance agent include:
Building insurance: This insurance is necessary if you own the building in which your liquor store is located. It provides coverage for damage to the building’s structure in case of damage caused by a covered event such as wind, fire, lightning, or vandalism. If you rent the building, it is possible that your landlord may require you to carry some of this coverage as one of the terms of your lease agreement.
Business personal property insurance: This provides coverage against loss or damage to the property kept inside your liquor store. This includes everything from the inventory of liquor to the shelving, flooring, light fixtures, cash registers and computer systems.
Crime Insurance: It is an unfortunate fact that liquor stores are frequently targeted by criminals looking for quick cash. You can protect your store by taking risk management measures, but that is not always enough; crime insurance covers you against the robberies that take place despite your best efforts at prevention. You can buy coverage to include robberies on your store’s premises as well as off-premises, such as when a courier is taking cash to the bank to make a deposit. Your insurance agent can help you identify the types of crime insurance that are right for your liquor store. Do you need insurance coverage for a drug store?
The liquor liability exclusion doesn’t apply to all business types. Host liquor liability is coverage under a commercial general liability policy (CGL) for businesses that have an incidental exposure to alcohol.
For example, a financial firm serves alcohol at their annual company party. An intoxicated employee accidentally strikes a pedestrian on his drive home, which results in a lawsuit against the financial firm for the pedestrian’s injuries. Since the firm isn’t in the business of serving or supplying alcohol, their general liability policy may cover the incident.
Alternatively, if the business were a tavern instead of a financial firm, their general liability policy wouldn’t cover the accident. The tavern would’ve needed liquor liability insurance to cover the accident, since they’re in the business of serving and selling alcohol.
Liquor store liability insurance cost
Basic factors that influence the cost of your liquor liability insurance are:
Your exposure – A convenience store with 10% liquor sales can expect to pay less than a grocery store with 40% liquor sales.
Profession – Rates vary on based on your industry. A caterer generally faces different risks than a restaurant, so they can expect their rates to differ.
Location – Your liquor liability insurance cost depends on various factors related to your location. For example, businesses will usually pay more in locations with a higher number of total claims than those with fewer claims.
Claims history – Insurance companies typically view businesses with a poor claims history as higher risk. This means they’ll typically have a higher rate than businesses with no claims.
