Insurance is not only a safety net for unexpected accidents, but it can save the life of our business if a claim is filed against you. In most states, it’s illegal to not have insurance if you run a bartending or catering business that serves alcohol. There are specific insurance policies out there for small businesses just like your mobile bar business with language made to keep you from having to pay heavily out of pocket.
Saving your business from a devastating setback is absolutely worth getting insurance for. But what kind of insurance does a mobile bar need? Read below to get the down low on how you can safeguard your business and keep it running successfully for years to come.
Why do I need insurance?
There are many risks associated with running a mobile business that sells alcohol to patrons. Without liability insurance, you may be required to pay hundreds of thousands of dollars out of pocket to cover claims against your business.
Think of driving your car without insurance and getting into a bad accident. If you are deemed at fault (which your business is more likely to be in lawsuits) you would be in debt for years and years paying off medical and property damage to the other party. It’s the same with small business liability insurance. You want to make sure you have all your bases covered so there’s no way for someone to come in and bulldoze your business off of something you had little to no control over.
What is Commercial Liability Insurance?
The most common insurance for a business to get is commercial general liability insurance, also called CGL insurance. A CGL policy protects your business from financial losses if you are found liable for property damage or personal injury caused by your services, business operations or your employees.
What does CGL protect my business from?
A CGL policy covers:
- Property Damage (exceptions apply)
- Bodily Injury (exceptions apply)
- Copyright Infringement
- Legal Expenses
- Product Liability
Be aware that there is an important exclusion in your CGL insurance called the liquor liability exclusion that excludes the “Bodily Injury” and “Property Damage” clauses if you sell or distribute alcohol in your business. This can be a big issue for mobile bar businesses, which is why there is liquor liability insurance.
What is the liquor liability exclusion in CGL insurance?
Liquor Liability insurance is a standard liability exclusion in your CGL insurance that explicitly excludes the clauses for covering “Bodily Injury” or “Property Damage.” This means you, the insured, would not be covered and may be held liable for:
- Causing or contributing to the intoxication of any person(s).
- The furnishing of alcoholic beverages to a person or persons under the legal drinking age or under the influence of alcohol.
- Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages.
The language of this is intentionally broad, so it can make sure to encompass any and all claims that may occur related to any of the statues listed. They are designed to make sure all claims related to sale or destruction of alcohol can be used in the coverage, so your business can function without worry of being sued or taken advantage of. As a business related to alcohol, your responsibilities are many and insurance is there to help you if anything should happen beyond your watchful eye.
What is liquor liability insurance?
Liquor liability insurance is coverage that helps protect any business that sells, serves, or distributes alcohol. This type of business insurance can help cover claims of bodily injury or property damage excluded from your regular policy. This coverage ensures that any damage or injury caused by an intoxicated person after a company serves them alcohol or any medical bills that occur to them or because of them are covered as well.
Do I need both CGL and liquor liability?
Yes. Because of the liquor liability exclusion, you will need both CGL and liquor liability to make sure all your bases are covered for your business. Your insurance company may give you a discount for multiple policies on one plan, so make sure to inquire about discounts and savings for small businesses and group your policies.
How expensive will my policy be?
Several factors can determine the price of your business’s insurance policy. These include the:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
Speak with your insurance agent for any additional information related to these policies.
Trailers That Can Match Any Aesthetic
If you’ve got insurance and are all set to go with your new mobile bar business, we can help you obtain what might be the most crucial tool to your business — the trailer itself.
Triple B Trailers has been in business for over 60 years and we’re here to help you get the perfect trailer to meet all of your and your patrons’ needs. Our trailers are bar-ready and come in 6 different models for exactly the setup you need.
Ready to get your mobile bar on the road? Check out our website today and take a look at our selection!