“I can’t really be involved in a lawsuit over the actions of someone I served alcohol to… right?”
Unfortunately, the answer is yes. These lawsuits can cost you thousands of dollars in legal expenses, if not more.
The good news is liquor liability insurance is designed to cover these costs so you don’t have to pay them out of pocket. Let’s look at three real-life examples of mobile bartender lawsuits that were covered by insurance before diving deeper into this essential coverage.
Real-Life Stories: How Liquor Liability Insurance for Mobile Bartenders Made a Difference
Alcohol is estimated to be involved in 28–43% of all violent injuries and 47% of homicides. Every time you serve, there’s a risk of that customer committing a violent act, and you could be held partially responsible for that as the person who provided them with alcohol.
The following are real examples of how liquor liability coverage from Insurance Canopy protected mobile bartenders from financial disaster. Identifying details have been altered and removed, but the type of incident, state it occurred in, and payout are unchanged.
Case Study 1: Overserved Driver Causes Car Accident
A mobile bartender in California was working at a baptism, serving drinks to happy partygoers celebrating the bride and groom.
One guest made several trips up to the bar throughout the celebration. Unfortunately, the bartender didn’t realize this person was underage and continued to serve them.
When the guest left the party, they were in no state to drive and crashed their car into an oncoming vehicle. Thankfully, both parties survived, but the other passenger was critically injured and required weeks of hospitalization and inpatient surgeries to recover.
Soon after, the passenger sued the bartender for negligence, claiming they were responsible for the accident.
Case Study 2: Intoxicated Guest Gets Injured at a Party
To celebrate a strong year, a company in Texas threw a holiday party for their employees and hired a mobile bartender to serve drinks.
The party was going well, as employees got to know each other better and bonded over shared interests outside of work. However, one employee was having a little too much fun after visiting the bar several times and started dancing to a song on the party playlist.
He lost his balance, fell, and hit his head on the corner of a nearby table. This resulted in a hospital stay, several stitches, and lost wages from missing work. The employee sued the bartender, claiming they should’ve recognized he was intoxicated and cut him off before things got dangerous.
Case Study 3: Deadly Shooting Between Inebriated Guests
When a mobile bartender in South Carolina was hired to serve drinks at a bar in a local music festival, they were excited by a night of great music and (hopefully) good tips.
However, things turned ugly when a group of intoxicated festivalgoers got into a fight. What began as a verbal altercation turned deadly when one of them pulled out a gun and shot two others, killing one and seriously injuring another.
The family of the victim who passed claimed the bartender was partially liable for the death of their loved one and sued them.
The Risks of Serving Alcohol at Events
Having a bar or alcohol service at an event can bring the party to life, but it also comes with risks you can be held legally responsible for, just like the bartenders mentioned above.
Most states have dram shop laws, which determine what alcohol-serving businesses are legally liable for if someone they served or sold to causes injuries or property damage.
Even if your state doesn’t have dram shop laws, you can still be sued by people or organizations affected by the actions of your intoxicated patrons. We’ll dive into some of the biggest risks that could lead to an expensive lawsuit.
Injuries to Other People
It’s no secret that too much alcohol can lead to injuries, from the intoxicated individual to anyone they encounter. Any time you serve alcohol to someone, there’s a risk they’ll get behind the wheel of a car and cause an accident that injures themselves and/or others.
Alcohol also causes heightened emotions and poor decision-making in inebriated people, which can easily lead to a physical altercation. These situations can be even more harmful (or deadly) when weapons are involved.
Damage to Other People’s Property
When alcohol consumption leads to poor coordination, there’s always a potential for property damage. This can range from relatively minor situations, like a guest breaking a table after attempting to dance on it, to more serious scenarios like car crashes.
Violating Liquor Laws
Alcohol is extremely regulated in the United States, and that means there are a lot of laws regarding who you can sell to or serve. If you accidentally serve an underage guest, you can face legal consequences.
The same is true for overserving in many states. If you are accused of serving alcohol to a visibly intoxicated person, you can be held financially responsible for any property damage or injuries they cause as a result.
What Liquor Liability Insurance Covers
While incidents like the ones above can make it seem like serving alcohol isn’t worth the risk, liquor liability coverage for bartenders can pay for some (or all) of the resulting costs.
This includes:
- Attorney’s fees
- Settlements
- Judgments
- Property repairs and/or replacements
- Medical bills
Instead of being left alone to cover these costs, your liquor liability insurance is designed to shield you from that liability. As you can tell from the real claim examples in this blog, this could easily save you tens of thousands of dollars — or even a million.
Why Every Mobile Bartender Needs Liquor Liability Insurance
Some of the top reasons you need liquor liability insurance are:
- Legal requirements: You may be legally required to have liquor liability insurance, especially if you need a liquor license
- General liability exclusion: General liability policies do not cover alcohol-related claims, so you cannot rely on that coverage to protect you in those situations
- Financial security: One alcohol-related claim can be devastating and potentially put you out of business, but protecting yourself with insurance can prevent this
- Better access to gigs: Many clients and venues expect you to have liquor liability insurance before you work with them
No matter what kinds of events you work, from corporate mixers to festivals, all of these reasons apply to you and make liquor liability insurance a must-have.
Protect Your Mobile Bartending Business Today!
At Insurance Canopy, we’re here to shield your mobile bartending business with highly rated coverage at a great price.
Our mobile bartender insurance policy combines liquor liability and general liability insurance for the most comprehensive coverage, all for as low as $35.42 a month.
With liquor liability limits up to $1,000,000 occurrence (per claim) and $2,000,000 aggregate (for all claims in a policy period), you get coverage that meets most legal and venue requirements.
Paying for insurance can feel like just another expense to add to your list. But for the mobile bartenders we showcased above, that expense ultimately saved them from financial disaster when the worst-case scenario happened.
Stay compliant, book more gigs, and give yourself a financial safety net with liquor liability insurance today!
FAQs About Insurance for Mobile Bartenders
Do I Need Liquor Liability Insurance If I’m Only Bartending at Private Events?
Yes. No matter what kind of events you work, you can still be held legally responsible for any property damage or injuries caused by an intoxicated guest.
How Much Does Liquor Liability Insurance Cost for Mobile Bartenders?
Liquor liability insurance starts at $35.42 a month. However, the amount you pay is determined by factors like:
- Previous claim history
- Your gross annual revenue
- Which state you operate in
- The type of events you work
- Which optional coverages you add to your policy
What Happens If I Serve Alcohol to Someone Who Is Already Intoxicated?
Serving alcohol to an intoxicated person can get you into serious legal trouble, whether you did it knowingly or not. Dram shop laws often hold businesses legally responsible for damages if they serve a visibly inebriated person.
The best way to avoid this is to know the signs of intoxication (slurred speech, loss of coordination, belligerent attitude, etc.) so you can recognize them and cut off individuals who exhibit them at your event.
Can General Liability Insurance Protect Me From an Alcohol-Related Lawsuit?
No, general liability policies exclude alcohol-related claims from coverage if selling, serving, or providing alcohol is part of your regular business operations. This is a huge part of why mobile bartenders need liquor liability insurance; it’s the only policy that covers alcohol-related liability expenses.
Kyle Jude | Program Manager
Kyle Jude is the Program Manager for Insurance Canopy. As a dedicated program manager with 10+ years of experience in the insurance industry, Kyle offers insight into different coverages for small business owners who are looking to navigate business liability insurance.
Kyle Jude is the Program Manager for Insurance Canopy. As a dedicated program manager with 10+ years of experience in the insurance industry, Kyle offers insight into different coverages for small business owners who are looking to navigate business liability insurance.
