If you are in the planning stages of opening a new bar or pub, there's no doubt you have been putting together a list of alcoholic drinks your establishment will offer. More importantly, however, you should be putting together a list of the requirements you'll need to meet in order to get an approval for your alcoholic beverage license, which includes liability insurance and various bonds. Due to Dram Shop Acts that have been enacted in most states, it's also crucial for you to consider several things regarding your employees before and after you hire them. Here's a basic rundown of what you need to know:
Liability Insurance: Protects Against Damages Caused by Intoxication
Liability insurance protects you and your business against damages caused by customers who leave your premises and cause personal injury or death due to driving while intoxicated. In most states, including Texas, it is legally required to carry liability insurance in order to become an alcoholic beverage license holder. Of course, having insurance doesn't give you the go-ahead to serve alcohol irresponsibly. If you serve alcohol irresponsibly, you could risk losing your liability insurance coverage, which would mean an automatic loss of your privilege to serve alcohol.
Bonds: Guarantees Your Compliance to Federal & State Laws
You'll also need a series of bonds, which can vary from state to state and may include conduct surety bonds, performance bonds, and mixed beverage tax bonds. Most states require you to obtain bonds before you can get a license to serve alcohol. Bonds are used as a sort of credit line that will pay the local or state government if you fail to pay the required taxes on sales or falsify your records. If a bond does pay out, you will be required to pay the surety provider back in order to keep your alcoholic beverage license.
Indemnification Clause: Holds Your Employees Responsible for Being Negligent
While not a requirement in some areas, it's a good idea to an include indemnification agreement in your list of first-day paperwork you will have for your employees. This agreement says that your employees will be protected against lawsuits and, if necessary, bond repayments, with the caveat that you can seek compensation from your employees should they be found negligent in serving alcohol to someone who was clearly already intoxicated to the point of them being a foreseeable risk of causing injuries and damages.
Contact a company like Alcoholic Beverage License Service for more information and assistance.