What might happen if a business does not have liquor liability insurance?

Liquor liability insurance is crucial for businesses serving alcohol, as it protects them from the financial repercussions of alcohol-related incidents. Without this insurance, a business may face substantial financial liabilities, which can result from various claims such as property damage, personal injury, or wrongful death due to intoxicated patrons. These claims can lead to costly legal fees, settlements, or judgments that could severely impact the business's financial stability.

This coverage is designed to help mitigate these risks, ensuring that if an incident occurs, the business has resources to cover potential claims rather than risking bankruptcy or insolvency. Consequently, the absence of liquor liability insurance can leave a business vulnerable to the financial fallout from behavior related to alcohol served on its premises. Thus, the risk of significant financial liability is a key reason why having such insurance is vital for any establishment serving alcohol.