If you are a restaurant or bar owner, as we all know, when alcohol consumption increases, the chance of accidents and liability situations also increases.
As a bar or restaurant owner, do you understand your liquor liability? You sold the alcohol, now what is your risk?
If your New Jersey restaurant or bar is serving beer and alcohol here is what you need to be aware of:
Serving Underage Customers Is Always Illegal
Underage drinking is a serious issue, especially for bars and restaurants. A licensed business which serves alcohol to a person under age 21, even unintentionally, may be fined or have their liquor license suspended or revoked. In addition, in New Jersey, underage patrons who are served can sue the serving establishment for any injuries they sustain related to their intoxication.
When You Can Be Liable for Drunken Behavior
Beyond serving underage patrons, there are other ways your restaurant can be held liable for the drinks it serves. New Jersey law recognizes Dram Shop liability which governs establishments that sell alcohol and those that serve alcohol to be liable for the actions of their drinking patrons.
Bars and restaurants are considered strictly liable for their patrons’ behavior, and liquor licenses can be suspended or revoked if a customer engages in illegal activity (e.g. fighting, public urination) after drinking. The server of alcohol to visibly intoxicated persons or minors is liable if that person then causes death or injury to a third party in an alcohol-related automobile collision or other accident.
Licensed establishments may be liable for drunk driving accidents, assaults, falls and other injuries and property damage caused by a customer, but are not liable for behavior which is unforeseeable (e.g. falling out of a tree), nor are they liable if they only served food or non-alcoholic beverages to a drunk person.
One More Note about Liquor Liability
Even if your restaurant is not at fault, it can cost a significant amount to defend yourself. Liquor-related legal issues can take years to make their way through the legal system. Even if your restaurant served a single drink to an intoxicated patron at the start of the night, you could be named as one of the parties in the lawsuit.
If the lawsuit doesn’t make it to court until two years after the incident, your lawyers are going to need hours and hours to track down potential witnesses, pull receipts, and find other evidence that shows your establishment did nothing wrong. All of those hours, of course, are billable.
Whether you’re eventually found liable or not, you can cover your legal costs (and any potential settlement or judgment costs) with Liquor Liability Insurance. Contact LG Insurance for a free quote and consultation regarding your establishment and Liquor Liability Insurance needs.
All content provided in this blog is for informational purposes only. Topics discussed on this blog relate to insurance products and issues in a general application, and are not an offer of insurance, a guarantee of coverage, or applicable to specific and individual circumstances. Contact LG Insurance Agency for questions and information specific to your insurance needs.
