Question

A restaurant wants to add a bar and sell alcoholic beverages. To protect themselves from the risk of over-serving customers and getting dragged into lawsuits rising from intoxicated customers or drivers, what kind of coverage should it make sure it has?

(A) An Umbrella policy

(B) Automobile Liability coverage

(C) General Liability coverage

(D) Liquor Liability coverage endorsed onto its General Liability policy

Answer 1

A restaurant should have Liquor Liability coverage endorsed onto its General Liability policy to protect themselves from the risks associated with serving alcohol.

Step-by-step explanation:

To protect themselves from the risk of over-serving customers and getting dragged into lawsuits rising from intoxicated customers or drivers, a restaurant should make sure it has Liquor Liability coverage endorsed onto its General Liability policy. This type of coverage specifically addresses the risks associated with serving alcohol.

General Liability coverage is important for any business, as it protects against claims of bodily injury, property damage, or personal injury. However, Liquor Liability coverage is essential for establishments that sell alcohol, as it covers incidents that may occur due to the consumption of alcohol.

Automobile Liability coverage and an Umbrella policy are not directly related to the specific risks associated with serving alcohol and therefore may not provide adequate protection in this scenario.