Owning a liquor store means providing a product that is a large part of most celebrations, and it’s something that will never go out of style, but your potential risks are as big as your potential benefits–your liquor store insurance coverage should be a big consideration in your business planning.
As a business owner, you choose the endeavors that will hopefully be the most rewarding, both financially and otherwise. You’ve probably given thought to your shop’s location, the stock you’ll carry, and you probably know some of the basic risks. Deciding on the amount and type of liquor store insurance to purchase can feel almost like gambling.
Do you really need to take on more overhead in the form of bigger premiums? If your business insurance covers your general bases—like slips and falls‚ does your liquor store insurance really need to do more? The short answer is yes.
The Coverage You Need for a Liquor Store
These are some important business insurance coverages liquor stores should consider if you don't already have them in place to protect your business.
Consider a Business Owner’s Policy
A good rule of thumb when comparing quotes for liquor store insurance—or any business insurance—is to look at coverages in addition to costs. Many business owners looking for a streamlined solution opt for a Business Owners' Policy (BOP). A BOP typically includes general liability insurance, business property insurance, and business interruption insurance.
General Liability Insurance: This is a basic, foundational policy that every business needs. A general liability policy includes coverage for
- Third-party bodily injury: If a customer slips on a recently cleaned floor and breaks their arm, you can be held liable. General liability coverage can pay for their medical expenses and settle any lawsuits.
- Third-party property damage: One of your shopping carts is blown into a customer's car, damaging their vehicle. This policy can help pay to repair the damage.
- Advertising injury (libel, slander, copyright infringement): If you claim your liquor store has better prices than a leading chain (that you explicitly name) they can sue you for advertising injury.
- Product liability insurance: Some general liability policies include some product liability coverage. It covers some level of injury or illness that may have been caused by a product from your store.
Commercial Property Insurance: Your building, equipment, and inventory should be covered by a commercial property policy. If they were damaged or destroyed, your insurance company will help repair or replace the damaged items. It can be referred to as building insurance and business personal property insurance. If you live in an area prone to flooding or earthquakes, you may need to purchase separate insurance policies for those occurrences as they’re excluded from property insurance.
Business Interruption Insurance: If your business faces a temporary setback—like property damage from a storm—and you can’t operate, business interruption insurance comes into play. It can help cover lost profits, payroll, taxes, debt repayment, etc. It's often referred to as business income and extra expense coverage.
Unfortunately, liquor stores are often robbed by their own employees (fraud, forgery, embezzlement, robbery/theft, and other crimes). Consider investing in crime insurance to protect your business. A crime insurance policy should include Employee Dishonesty Coverage, to protect you from monetary losses if an employee were to steal from you.
Liquor Liability Insurance
Liquor liability insurance is one of the most important policies to include in your business insurance package. Why? Because of Dram Shop Law. This allows 3rd party victims of property damage or bodily harm to sue any individual or business that served the alcoholic beverages that led to someone becoming intoxicated. The person suing you can receive compensation from whoever orchestrated the crime and whoever sold them the alcohol.
Cyber Liability Insurance
Do you have a rewards program? Do you store client information, such as name, phone number, or credit card information? If your system is hacked and someone’s information is stolen, you can be held liable. A cyber liability insurance policy can help cover the cost to notify impacted customers, provide them with credit-monitoring, and pay for identity protection.
Other Insurance Policies to Consider
- Workers’ Compensation Insurance: If you hire employees, you’re required to obtain workers' compensation in almost every state. Workers' comp protects your employees by offering them compensation for medical bills and lost wages if they’re injured on the job.
- Employment Practices Liability Insurance: If any employee accuses you of discrimination, wrongful termination, etc. your insurance company can provide legal representation and cover any settlements if necessary.
- Commercial Umbrella Insurance: An umbrella policy extends the limits of your coverage in case it’s needed (if you exceed the limits of an insurance policy). It can be more affordable to purchase umbrella coverage instead of paying to up the limits of other policies.
- Equipment Breakdown Insurance:
How Much Does Liquor Store Insurance Cost?
Insurance costs for a liquor store vary. Some insurance companies offer general liability insurance starting as low as $39 a month. As you increase policy limits and layer in more coverage, the cost goes up. Here are some other things that impact the cost:
- The size of your business
- The products you sell
- How many employees you have
- The limits and deductibles you choose
A knowledgeable insurance agent can help walk you through the type of insurance you need and how much coverage you need for your liquor store.
Get a Free Insurance Quote for Your Liquor Store
It may seem as if insurance is simply one more cost to take into account—but consider how expensive a lawsuit can be? Could a lawsuit close your doors? What if it was over an incident that could have been paid for with the correct business insurance coverage? We know how hard it can be for small business owners to sort through the necessary insurance covers. That's why we're here to help. Give us a call at 877-907-5267 to speak with an insurance agent. Or you can complete the form at the top of the page and someone will connect with you shortly.
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