If you operate a diner, food truck, or tavern, you might need restaurant insurance to protect you from financial losses. When an intoxicated customer causes harm to someone or damages property, you can file a claim to seek coverage. Here are more details about the claims process for liquor liability insurance:
Insurance Company Notification
When a customer drinks too much and injures others or destroys property, inform your insurance company or agent right away. By reporting the incident promptly, you help your insurer begin the claims process and gather the necessary information. As you talk to an insurance company, describe who was involved in the incident, including patrons, staff, and third parties. Many companies allow you to call or email them to explain what happened and provide documents.
To simplify the investigation process, notify your insurer of the date, location, and time of the incident. In your paperwork, indicate whether law enforcement or medical services were called to the scene after the issue happened. You can also provide information about CCTV footage, which acts as evidence when an insurance company investigates the event.
Insurer Investigation
Once you notify your insurer, they can send a specialist who handles liquor liability claims to gather more information about what happened. During this process, an adjuster collects statements from employees, witnesses, and any other individuals involved. This professional also interviews the injured party so that they learn more about what happened and any harm caused. The investigation may also include inspecting the damaged property and assessing the extent of the damage.
To determine whether your business followed the right safety procedures, a specialist checks security footage, incident reports, bar receipts, and training records. An experienced investigator reviews your policy to determine which damages are covered under your restaurant insurance. After reviewing all the evidence, your insurer may decide if your business is legally responsible for the injuries or damages.
Legal Processes
If the injured party and an insurance company fail to agree on a settlement, the case goes to court. When someone files a lawsuit against your business, your liquor liability coverage may pay for your legal defense fees. The court examines whether your establishment was negligent, leading to issues, such as injury and property damage. During this process, you can share records, documents, and surveillance footage to help with the case. A legal team and an insurance company can inform you about the progress of the case and upcoming court dates. Once the court decides on compensation, your insurer may pay covered damages up to your policy limits; any amount beyond the policy limits is your responsibility.
Claim Resolution
An insurer covers medical expenses, property damage, and lost wages for injured parties, according to your policy terms. Depending on your policy, liquor liability insurance may cover bodily injury claims, which can include compensation for pain and suffering. Your insurance company uses records to estimate how much payment is needed to cover these expenses adequately. With adequate coverage, your policy may reduce the need for out-of-pocket payments. After paying claims, your insurer closes the file and updates your claims history, which helps you assess if your current coverage meets your needs. During this period, you can decide to train your staff or implement additional security measures to enhance the safety of your establishment.
Get Sufficient Restaurant Insurance Today
The claims process involves notifying your insurer and providing evidence, and the coverage you receive depends on your policy limits and terms. To determine if your policy can cover all the risks your establishment faces, talk to an agent to review your current coverage. They will make sure your restaurant has adequate protection and recommend adjustments to match the specific risks of your business.
