Your Guide to Liquor Store Insurance
What keeps customers coming back to your liquor store? Your business may have earned a strong reputation in the community for low prices, great customer service, unique and specialty items, etc.
But with liquor stores in the United States seeing a steady increase in beer, wine and spirit sales the past few years, it has never been more important to keep your liquor store open and in tip-top shape.
As a business owner, maintaining your liquor store is not an easy task. Keeping track of inventory, maintaining exceptional customer experience, keeping employees happy and motivated are at the top of the list in your day-to-day functions.
While sustaining your business operations is of great importance, ensuring the proper safeguards to protect the business you’ve worked so hard to build should be a top priority.
Insurance for liquor stores is a commonly overlooked issue facing liquor store owners. Small business insurance can be confusing to understand. In this article, we’ll be breaking down the key points of focus when deciding on buying or looking for a liquor store insurance quote.
Liquor Store Insurance Coverages
Liquor stores, like many other retail businesses, often require basic coverages on their business owner’s policy. We recommend the following:
Commercial General Liability
This coverage protects your liquor store against liability claims and/or property damage that may arise out of operations, products, completed operations and advertising / personal injury. A great example of a common claim of injury is the classic slip and fall due to wet floor from wet weather, mop and bucket, or broken bottle.
Business Personal Property
Your business’ fixtures, coolers, furniture and inventory are all included in a liquor store’s business personal property coverage section. Business personal property coverage claims usually arise as a result of a mishap such as fire, flood or theft. Possessing this important coverage allows you to protect your liquor store from a significant loss.
Loss of Business Income (Business Interruption Coverage)
Have you ever wondered what would happen if your liquor store had to close down for days, weeks or even months due to a catastrophe such as a fire? Sure, your business personal property coverage would provide you with coverage on your contents or business personal property, but not on the loss of your liquor store’s income. Loss of business income helps cover the following:
- Normal operating expenses, including employee payroll, while your liquor store is closed.
- Loss of profits your liquor store would have earned.
- Extra expense of temporarily relocating your liquor store if possible.
Liquor Liability (Dram Shop)
The sale of alcohol in your business opens up a unique risk of liability to your liquor store. If an accident is caused by a customer, your business may be held liable for any bodily injury or property damage as a result. Liquor liability insurance coverage protects your liquor store if held liable due to a patron’s mishaps. Currently, 43 states mandate liquor liability insurance for liquor stores.
Liquor Store Insurance Costs
To determine the cost of your liquor store’s insurance policy, a few details of your particular business are considered in a quote. These important details are asked in a liquor store insurance application to allow an insurance carrier to determine your business’ potential risk and may include:
- Gross annual sales
- Amount of contents
- Years in business
- Loss history
- Hours of operation
- Protective devices including alarm, sprinkler system, etc.
Liquor Store Certificate of Insurance
A certificate of insurance is a single page document, provided by your insurance agent, that may be used to provide information on your liquor store’s insurance coverage.
A certificate of insurance may be requested from liquor stores by third-parties such as vendors, property owners or managers and the state department.
This certificate verifies certain coverage found on your policy and contains information including insurance company, coverage types and amounts or limits, policy number and policy term.
Liquor Store Insurance Quotes
When reviewing your current liquor store insurance policy, or searching for a new quote, it is wise to understand the specific circumstances of your individual business. Insured ASAP insurance agency specialises in small business insurance and provides low cost liquor store insurance to small business owners. Contact us today to discuss your concerns or for a liquor store insurance quote.
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