Liquor stores can be found throughout the United States, particularly in densely populated towns and cities. It is a business type that enjoys a steady rate of income, as the industry is relatively unaffected by changes in the economy. If you own a beer, wine or liquor store, you will want to be sure to protect your business assets with a sound commercial insurance package. An independent agent can help you build a liquor store insurance portfolio that is designed to cover the unique exposures faced by your business.
2014 Beer, Wine & Liquor Store Industry Facts From IBISWorld
- There are approximately 41,300 beer, wine & liquor stores operating in the United States.
- These stores employ more than 170,000 people.
- The liquor store industry generates about $48 billion in revenue each year.
Cover Your Liquor Store With Sufficient Property Insurance
The physical property you keep in your liquor store holds a lot of value, so it is important that it all be properly insured against loss and damage. Some property insurance types that you may want to discuss with your independent insurance agent include:
- Building insurance: This insurance is necessary if you own the building in which your liquor store is located. It provides coverage for damage to the building’s structure in case of damage caused by a covered event such as wind, fire, lightning or vandalism. If you rent the building, it is possible that your landlord may require you to carry some of this coverage as one of the terms of your lease agreement.
- Business personal property insurance: This provides coverage against loss or damage to the property kept inside your liquor store. This includes everything from the inventory of liquor to the shelving, flooring, light fixtures, cash registers and computer systems.
- Crime Insurance: It is an unfortunate fact that liquor stores are frequently targeted by criminals looking for quick cash. You can protect your store by taking risk management measures, but that is not always enough; crime insurance covers you against the robberies that take place despite your best efforts at prevention. You can buy coverage to include robberies on your store’s premises as well as off-premises such as when a courier is taking cash to the bank to make a deposit. Your insurance agent can help you identify the types of crime insurance that are right for your liquor store.
Liability Insurance Can Shield Your Liquor Store From Large Financial Losses
As a business owner, it is important to bear in mind that anyone can sue anyone for anything. Lawsuits happen, and when they do, they can grow quite expensive for your business, even if the courts rule in your favor. This is because legal defense fees and court costs can add up. Fortunately, liability insurance can cover these fees as well as financial damages if you have the right kinds of coverage. Talk to your independent insurance agent about:
- General liability insurance: Commercial general liability insurance, sometimes referred to as CGL, meets the basic liability coverage needs of most businesses. It comprises several different types of coverage, including the following:
- Premises liability insurance: This covers injuries and property damage suffered by third-parties while they on your liquor store’s premises.
- Product liability insurance: This covers illnesses and injuries caused by faulty products sold in your store if your liquor store is named in a liability lawsuit.
- Advertising liability insurance: This covers your liquor store against claims of copyright or trademark infringement when the material is used for marketing purposes.
- Personal injury liability insurance: This provides coverage if a representative of your liquor store is accused of harming another through libel or slander.
- Liquor liability insurance: Each state has its own laws pertaining to liquor liability and your level of responsibility as someone who sells alcoholic beverages. Regardless of how the laws are written in your state, liquor liability insurance is a good idea because it protects your business if it is held liable for the actions of an intoxicated person who obtained the alcohol in your store.
- Cyber liability insurance: This insurance provides coverage for your liquor store if criminals hack into your computer system and steal customer information such as names and credit card numbers, and your business is sued by those affected.
- Employment practices liability insurance: This insurance provides coverage if an employee sues your liquor store for a perceived illegal business practice such as discrimination, sexual harassment or wrongful termination.
- Umbrella insurance: Sometimes, the liability coverage limits imposed by your commercial insurance policies just are not high enough. An umbrella insurance policy enables you to get extra liability insurance coverage in a cost-effective way. This coverage picks up where your other liability insurance coverage leaves off.
What Other Liquor Store Insurance Coverage Do You Need?
There are other coverage types that may be beneficial to your liquor store. Be sure to discuss the following with your agent:
- Business income insurance: This insurance provides your liquor store with a continuation of income if a covered disaster necessitates that it temporarily close down while repairs are made. This coverage typically lasts until you are able to resume normal business operations, for up to 12 months.
- Workers’ compensation insurance: Most states require employers to carry this insurance coverage. Regardless of whether or not it is required in the state in which your liquor store is located, this important coverage is a good idea. It enables you to provide employees with no-cost medical treatment for injuries sustained on the job. In the unfortunate event that an employee is killed on the job, such as during a robbery, this insurance provides coverage for funeral costs as well as death benefits for the employee’s survivors. Workers' compensation insurance also helps to drastically reduce your business’s risk of being sued by an employee for work-related injuries.
- Flood and earthquake insurance: Commercial insurance policies exclude coverage for damage caused by floods and earthquakes. If your liquor store is at risk of damage due to one or both of these events, your independent insurance agent can help you secure a commercial flood insurance or earthquake insurance policy to supplement your coverage.
- Employee Dishonesty Insurance: This insurance shields your liquor store from financial losses in the event that one of your employees steals from your business or engages in other kinds of illegal behavior while on the job.
Get Help Building a Strong Liquor Store Insurance Policy
Building a comprehensive commercial insurance portfolio for your liquor store can be a complex process if you try to go about it on your own. This is why it is to your benefit to work with an insurance expert like the independent agents in the Trusted Choice® network. These agents are available to help you identify your risks, understand your options and find competitively priced policies that meet your coverage needs. Find a Trusted Choice agent near you to learn about obtaining liquor store insurance for your commercial enterprise.