Bars and other establishments where alcohol is served are considered dram shops or a place where liquor is served. As such, they must abide by the Dram Shop Law in Texas; this law establishes the responsibility a bar has if they continue to serve alcohol to an obviously-intoxicated person. That establishment could become liable for any injuries or damage the intoxicated person sustained or caused, which makes it important for bars and any establishment serving alcohol to carry specific insurance for bars, including a liquor liability policy.
The Dram Shop Law
The Dram Shop Law in Texas can appear complicated to read, let alone understand. Basically, it begins when a bar or tavern serves liquor to someone who seems obviously intoxicated. If that person subsequently causes an accident either to themselves or to other people that results in property damage or injury, the bar or tavern that continued to serve liquor to that obviously intoxicated person may be liable for the resulting damage. The bar’s behavior constituted an act of negligence under those circumstances.
The burden of proof in using the Dram Shop Law is with the person who was served the alcohol. In most cases, property and injury claims have already been filed against the intoxicated person, who has undoubtedly retained the services of an attorney to present evidence that the Dram Shop Law is applicable in these circumstances. The Dram Shop Law can also be invoked in regards to serving liquor to minors if the bar or tavern either neglected to ask for proof of age or knowingly served liquor to a minor. This is why it is so important for an establishment that serves liquor to carry some type of insurance for bars.
Need For Liquor Liability Insurance
To protect against potential lawsuits arising from the Dram Shop Law, drinking establishments needs to carry liquor liability insurance. Insurance for bars provides a business with the liability coverage it may need to defend themselves against any accusations, as it is a common defense used by someone who injured or caused some type of damage while intoxicated.
If the drinking establishment involved were found to be negligent in serving liquor to an intoxicated person and held liable for any portion of the resulting property damage or injuries that happened as a result, an insurance policy for bars would pay for those damages up to the covered amount.
When someone consumes alcohol and causes an accident that results in property damages or injuries, that person often attempts to blame someone else for their condition. This defense is commonly used in court to get a reduced sentence; however, it can have huge repercussions for a business that is found liable. Because the possibility of being named in a lawsuit is a reality for businesses that serve alcohol, the protection offered by liquor liability insurance for bars is essential.
To be protected from situations where the Dram Shop Law may be use, owners of establishments serving liquor must carry the proper liability insurance for bars. Contact a local insurance company that deals with commercial business insurance to discuss specific needs and let them write a policy that carries liquor liability insurance!