Becoming A Bartender: Get Insured, Get Shaking

If you're a bartender, you know it's about more than just creating delicious drinks and providing friendly service. Bartending is a business, and as such, it's important to ensure your business is set up for success and protected from potential risks. One crucial aspect of this is obtaining the necessary licenses and insurance. While the licensing requirements vary depending on your state, it is generally essential to obtain a bartender license or certification to legally serve alcohol.

Additionally, bartenders face unique risks associated with serving alcohol, and these risks can result in costly claims. That's where bartender insurance, also known as liquor liability insurance, comes into play. It is designed to protect bartenders and their businesses from financial ruin in the event of liability claims. With this type of insurance, you can shield yourself from the financial burden of claims arising from accidents, property damage, or injuries caused by intoxicated individuals you served.

In this guide, we will delve into the importance of bartender insurance, the different types of coverage available, and the steps you need to take to become a licensed and insured bartender, ensuring both your peace of mind and compliance with legal requirements.

Understand the risks of serving alcohol

Understanding the risks of serving alcohol is a crucial aspect of bartending. While it can be a fun and rewarding job, bartenders must be aware of the potential dangers associated with serving alcoholic beverages. Here are some key risks to consider:

Legal and Civil Liability

One of the most serious risks bartenders face is legal and civil liability for over-serving alcohol to patrons. "Dram Shop" laws, present in many states, hold bartenders and establishments accountable for the actions of intoxicated individuals they serve. If a bartender continues to serve alcohol to someone who is already visibly intoxicated, and that person goes on to cause injury, property damage, or death, the bartender and the establishment can be sued by the third-party victim and may even face criminal charges. These laws are designed to protect the public and reduce alcohol-related harm, but they also place significant responsibility on bartenders' shoulders.

Diffusing Conflict

Bartenders often have to deal with intoxicated individuals who may become belligerent or unruly. Knowing how to handle such situations calmly and effectively is essential. Bartenders should be trained to recognise signs of intoxication, such as loud or agitated speech and rapid drink ordering. They should also know when and how to refuse service, offering alternatives like food and water while slowing down or stopping alcohol service.

Protecting Minors

Serving alcohol to minors is illegal and can have severe consequences. Bartenders must be vigilant in checking IDs and ensuring that only patrons of legal drinking age are served. This responsibility is crucial in preventing underage drinking and its potential consequences, including health risks and legal liabilities.

Impact on Business Reputation

Over-serving alcohol or serving minors can damage the reputation of the bartender and the establishment. Lawsuits and negative publicity can result in lost business and a tarnished image. Bartenders play a vital role in maintaining a professional and safe environment for customers, which is essential for the success of any bar or restaurant.

Personal Safety

Intoxicated individuals may become aggressive or violent, posing a risk to the bartender's personal safety. Bartenders should be trained in conflict resolution and de-escalation techniques to handle such situations effectively. Additionally, having proper insurance and security measures in place can help protect bartenders from harm.

Compliance with State and Local Laws

Bartending laws vary from state to state, and even within states, there may be city-specific regulations. Bartenders must be aware of and comply with the laws governing their specific location, including legal drinking ages, liquor licensing requirements, and rules regarding alcohol service and consumption by bartenders themselves. Staying informed about these laws is essential to avoid legal repercussions and ensure a safe working environment.

Learn about Dram Shop Laws

Dram shop laws are civil liability statutes that hold bartenders and establishments accountable for the actions of intoxicated customers. These laws are in place to ensure that alcohol is served responsibly and protect the public from harm caused by drunk individuals.

In most jurisdictions, dram shop laws apply only to commercial establishments, such as bars, taverns, and restaurants. However, some states, like Maine, extend this liability to social hosts as well. This means that even individuals serving alcohol at private events could be held accountable if a guest causes harm under the influence.

The laws vary by state, but the general principle is that a bartender or establishment can be sued by anyone injured by an intoxicated person if they served alcohol to that person negligently. This could include serving alcohol to someone who is visibly intoxicated or under the legal drinking age.

For example, if a bartender continues to serve drinks to a customer who is visibly drunk, and that customer then gets into a bar fight or drives drunk and causes an accident, the bartender and the establishment could be held liable for any resulting injuries or damages.

It's important to note that dram shop laws typically only apply to third-party victims, meaning the intoxicated person themselves cannot sue the bartender or establishment for their own injuries. However, there are some jurisdictions, like Pennsylvania, that allow first-party claims, where a patron can sue the establishment for injuries they sustained as a result of their own intoxication.

Bartenders and establishments can protect themselves from dram shop liability by ensuring they are properly trained and certified to serve alcohol responsibly. This includes being able to identify when a customer has had too much to drink, knowing how to refuse service, and checking for fake IDs.

Compare insurance policies

When it comes to picking the right insurance policy, it’s important to consider the needs of your business. There are several types of insurance policies available for bartenders, including annual and event policies, as well as general liability and liquor liability coverage.

Annual policies are typically best suited for businesses that serve liquor year-round. These policies provide coverage for 365 days and can be bundled with general liability insurance. Annual policies can start as low as $300 per year or $35.42 per month.

Event policies, on the other hand, are designed for businesses that only need liquor liability coverage for a specific occasion or a limited number of events per year. These policies can provide coverage for up to three consecutive days and are typically more affordable than annual policies, starting at $100 per event.

In addition to choosing between annual and event policies, bartenders also need to consider the level of coverage they require. General liability insurance is designed to protect your business from claims related to property damage and third-party bodily injury. Liquor liability insurance, on the other hand, covers claims arising from accidents caused by individuals who were served alcohol. It's important to note that general liability insurance does not cover alcohol-related claims, so bartenders will need to add liquor liability coverage to their policy.

When selecting a liquor liability policy, bartenders should consider the limits of the coverage. The limit is the maximum amount that the insurance company will pay out for a covered claim. Higher limits will result in higher premiums, but they will also provide more protection in the event of a claim.

In addition to the standard coverage options, bartenders may also want to consider adding additional coverage options to their policy, such as cyber liability insurance or inland marine insurance, to ensure that their business is fully protected.

Identify your coverage needs

Before purchasing liquor liability coverage, you'll need to have general liability insurance. This type of insurance is designed to protect your bartending business from claims relating to property damage and third-party bodily injury. For example, if someone trips over your equipment and injures themselves, general liability insurance could help you cover the costs.

However, general liability insurance does not cover alcohol-related claims, which is why bartenders also need to have liquor liability insurance. This type of insurance is designed to protect bartenders from the cost of alcohol-related claims, which can be extremely expensive. For example, if you accidentally overserve a customer who then causes an accident, liquor liability insurance can help cover the costs.

Depending on the needs of your business, you may also want to include additional policy options to ensure there are no gaps in your coverage. For example, cyber liability insurance will protect your business if your systems are hacked and your customer's personal information is compromised.

When choosing the right insurance policy for your bartending business, it's important to consider how many events you participate in per year. If you only work a few events, you may only need a 1-day bartender insurance policy. On the other hand, if you operate year-round, an annual policy will save you money since it covers unlimited events.

Know your limits

When it comes to bartender insurance, it's important to know your limits. This refers to the maximum amount your insurance provider will pay out for something your policy covers. The cost of your insurance will increase if you select higher limits, but you'll also receive more coverage in the event of a claim.

When choosing your insurance, you'll be asked to select a liquor liability coverage limit. Here are some examples of the types of limits offered by Insurance Canopy:

• $100,000 Occurrence / $300,000 Aggregate
• $250,000 Occurrence / $300,000 Aggregate
• $1,000,000 Occurrence / $2,000,000 Aggregate

The occurrence limit refers to the maximum amount covered per claim, while the aggregate limit refers to the total cost of claims covered during your one-year policy period.

It's important to choose an appropriate limit for your needs, as any claim that exceeds the limit on your policy will need to be paid out of pocket. For example, if you select a $100,000 occurrence limit and are faced with a $150,000 claim, you will be responsible for paying the remaining $50,000.

In addition to occurrence and aggregate limits, you may also come across the term "deductible." A deductible is the amount you must pay out of pocket before your insurance coverage kicks in. For example, if you have a $500 deductible and are faced with a $1,000 claim, you will need to pay the first $500, and your insurance provider will cover the remaining $500.

When selecting your insurance limits, it's crucial to consider the specific needs and risks of your bartending business. Factors such as the number of events you work per year, the types of events you work, and the number of guests you typically serve can all impact your coverage needs.

It's also important to review your policy carefully to understand what is and isn't covered. For example, bartender insurance typically covers third-party bodily injury and property damage claims, but it may not cover all types of incidents or claims. Knowing your limits and understanding the specifics of your policy will help ensure that you have adequate protection in the event of a claim.

Frequently asked questions