As a restaurant owner, you have to navigate several situations. Operating a restaurant is considered high risk because you may be sued at any moment. Most restaurants serve alcohol to patrons as another type of refreshment. However, one of the most volatile situations that may be dealt with is accidentally serving alcohol to someone who is underage. Underage drinking is illegal, and there’s a chance you could lose your business in the aftermath. Here’s an overview of how to protect your business against a potential underage drinking disaster.
If your restaurant knowingly serves drinks to a minor, you will be fined and possibly serve jail time. You will be held responsible as the restaurant owner, but the employee who sold the alcohol and the waiter could also be sentenced to jail time. The level of punishment is based on the severity of the offense. If this is your first offense, you may receive a warning, or your restaurant could be banned from selling alcohol. You could also have your liquor license suspended.
Purchasing liquor liability coverage is recommended. Liquor liability coverage protects your business if an intoxicated patron injures someone or causes property damage. You will be held responsible because you served alcohol to the patron, which led to them becoming intoxicated. It’s recommended that you look over state laws to see whether general negligence is active. General negligence looks at whether your business took reasonable action to prevent an intoxicated patron from causing harm. Dram shop laws govern the licensees of businesses that sell alcohol.
You can prevent underage people from drinking at your restaurant by following these tips;
It’s important that your staff thoroughly check the IDs of every patron who may be underage. While this can be difficult during high-traffic days, it can prevent a disaster from occurring. It’s recommended that you install one of your employees at the entrance to check IDs. ID training is important; because that helps your employees easily identify fake IDs that minors carry in order to drink.
If your restaurant has a lot of traffic on a regular basis, consider implementing a stamp system. It’s an easy way to prevent underage drinking. You can stamp the back of all minors’ hands. This sends a signal to staff to avoid selling any alcoholic drinks.
It’s recommended that you install a transparent policy. Your staff should be aware of the severe consequences involved with serving alcohol to minors. Make sure that your employees are aware that they may be held responsible as well for promoting underage drinking. It’s recommended that you outline different steps for how your staff handles underage drinking. If you have doubts regarding whether a person is intoxicated, your staff should avoid serving them more alcohol. Any issues should be handled quietly to avoid disrespecting the entire restaurant.
If you believe that your liquor license was unfairly taken away, the licensing board will set up a hearing. This gives you the opportunity to explain why your license should be reinstated. It’s recommended that you consider hiring an attorney to represent you. The State Liquor Authority will issue a final verdict.
Serving alcohol to a minor is a major violation that could jeopardize everything that you have worked for. The team here at GrayStone Insurance Group will help you find the right liquor liability insurance policy to protect your business. Contact us today to get started!
