Serving and selling alcoholic beverages is an intrinsically lucrative yet risky business. Most bars would have struggled with a client who insisted that he had not yet exceeded the accepted amount of alcohol consumption. Dram shop insurance compensates for your expenses during a lawsuit. It also covers some or all of the charges if you are found liable.
What is Dram Shop Insurance?
A dram shop is a description of an enterprise that offers on-site liquor for consumption. Dram shop insurance Chicago consequently handles obligations related to the distribution of alcohol, in particular, over-serving resulting in intoxication, and further injuries and damages. In the case of business operators, the aforementioned circumstances render them responsible (over the intoxicated person) in scenarios concerning alcoholic substances if:
The company sold the alcohol consumed by the intoxicated person resulting in the injury of another person. Liquor marketed by the company resulted in the intoxication of the individual. The cause of injury is the intoxication.
What is Illinois's Dram Shop Law?
The Illinois General Statutes permits an individual who has been harmed by an intoxicated person to press for charges and claim for compensation to the seller who distributed the liquor. It allows a person to request compensation for personal injury, damage to assets, and damage to means of support or loss of society.
Illinois doesn't require the seller to proceed in serving the alcoholic beverage even after the defendant had become intoxicated. However, the fact that the seller-provided alcohol induced the intoxication, which further caused the injury, is sufficient.
What can you include in a dram shop insurance policy, and how much does it cost?
Based on the category of enterprise you manage, you may want to concentrate on various issues in your policy plan; however, a typical Liquor. Liability Policy should include the following for maximum protection, especially for when your location is Chicago:
- Assault & Battery Coverage
- Employee Inclusion
- Legal Defense Costs
- Specific Damage Definition
Many business operators are concerned about the expense of liquor liability insurance, but the price of insurance varies on a range of considerations such as the following:
- Amount of alcohol served
- Location (Chicago and Illinois-based areas are much more at risk)
- Liability limits
- Food to alcohol ratio
- Operation hours
- Staff and crew training
- Business size
There is a wide array of discounts available though so it is very much suggested to inquire for a quote.
What can be done to manage the risk?
With respect to obtaining dram shop insurance Chicago, companies also need to be assertive in decreasing their alcohol-induced lawsuit potential.
From giving instructions to staff to refusing to serve liquor to an intoxicated person, requiring accurate monitoring of all cocktails and mixes, advocating for the use of assigned riders or vehicles, you can reduce your risk of facing liquor liability allegations by applying and enforcing secure alcohol-serving methods.
A business may also restrict access to liabilities by prohibiting minors and visually intoxicated clients from being served.