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5 Most Common Liability Risks Bar and Restaurant Owners Face

Dec 21, 2023

Business Insurance

Risks Bar and Restaurant Owners Face Risks Bar and Restaurant Owners Face

Running a successful restaurant business or bar can be overwhelming for entrepreneurs. Accidents and mishaps can happen at any time due to the effects of alcohol. It can lead to liabilities and risks that business owners can face. Let's continue reading to understand the five most common liability risks bar and restaurant owners meet to highlight the importance of having sufficient liability coverage.

5 Most Common Liability Risks That They Face

Here are the top five liability risks -

  1. Underage Customers

    In the U.S., according to the Minimum Legal Drinking Age (MLDA) laws, the legal age for buying or consuming alcohol in a public space is 21 years. Suppose a server or a bartender at your restaurant serves an alcoholic beverage to an underage patron. In that case, your business may face liability claims if they fall ill or cause an accident that causes injuries or property damage, including a lawsuit for illegally selling alcohol to them.

  2. Driving Under the Influence (DUI) 

    If an intoxicated customer, after being served drinks at your restaurant/bar, causes an accident while DUI, your business may be held financially liable for bodily injury or property damage claims related to the accident.

    While you cannot control what your customers do once they leave your restaurant, your business can be named in a personal injury lawsuit filed by a person injured in the accident.

  3. Drunken Brawls

    Fights among drunk patrons are one of the common liability risks restaurant owners often face. Flared tempers and bruised emotions among customers who have had one too many drinks often trigger fights, which can quickly turn into a free-for-all brawl. The risk of someone getting injured or damaging their property is relatively high.

    As a business owner, you may be named a respondent in a lawsuit for serving drinks, not taking enough measures to stop an altercation from becoming a full-fledged fight, or other reasons.

  4. Other Patron Injuries

    Imagine a scenario when one of your customers who is in your restaurant to relax and have a good time with friends and family is injured in an accident caused by a drunk patron or an innocent bystander wounded in a bar fight. You may face liable claims from the injured party for medical expenses and other related costs based on your failure to offer adequate security to your patrons.

  5. Fire Hazards

    A fire hazard is another liability risk restaurant owners face. It can damage your business even if there are no fire-related injuries. You may be liable to pay for the injuries and property damage caused during the commotion among the customers trying to vacate the premises. You may even face an expensive lawsuit due to inadequate fire safety measures or inaccessible or blocked exits.

Get Specialty Protection for Your Business with T.A. Swain Insurance Group

Our T.A. Swain Insurance Group team understands the unique risks that restaurant and bar owners face. Our specialty bar & tavern insurance protects your business from several potential risks. For more details, contact us today. Call us at (614) 224-1329 for further assistance.

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