It’s no secret that Halloween can bring in major revenue for restaurants. Everyone seems to be in the mood to treat themselves, especially if there are libations involved. However, as one of the top five booziest holidays, Halloween can pose some major liabilities related to intoxication and binge-drinking. To make sure your restaurant isn’t tricked instead of treated this year, be sure to protect yourself with liquor liability insurance.

Any business that serves alcohol is at risk of facing an alcohol-related claim, and restaurants are no exception. Preventing overconsumption can be difficult, especially in a busy atmosphere where customers’ face time with employees is limited. Even if employees are diligent and able to cut off intoxicated persons, there is no way to predict how patrons will act when under the influence. Customers could get into fights, damage property, or unintentionally harm themselves or others.

If you can’t control how customers behave, why does this matter? Because under “Dram Shop” laws like New York’s, you can still be held liable for their actions. A single claim can cause major damage to your business, financially and otherwise. Even if you win the lawsuit, legal fees would take a serious bite out of profits and word of mouth can hurt your restaurant’s reputation.

Most standard restaurant insurance policies do not offer coverage for alcohol-related incidents. Luckily, liquor liability insurance can be used to fill the gaps and protect restaurants and staff from legal action. Liquor liability insurance can’t prevent someone from filing a lawsuit, but it can protect against losses if damages are awarded as a result of altercations, accidents, and other alcohol-related incidents.

While Halloween can be a major revenue-booster for restaurants, it can also pose a major risk. On a holiday where many customers are drinking heavily, things can quickly get out of hand. Liquor liability insurance provides restaurants with coverage for alcohol-related incidents, so you can relax and enjoy the extra sales. 

Note: Liquor liability coverage varies by policy, so consult with one of Bikelane’s restaurant insurance experts to see which policy best fits your restaurant’s unique needs.