How Following Best Practices Help Restaurants and Bars Manage Liquor Liability
By Kim Gore
When it comes to risks in the restaurant industry, among the most troublesome – and persistent – is that of over-serving alcohol to guests.
Numerous studies and surveys over a span of years and locations have made the point. Even the most aggressive dram laws about liquor service to intoxicated individuals don’t necessarily make a dent in the problem:
- Almost half of young adults leave dance clubs in a legally impaired condition.
- College students are often impaired or intoxicated when leaving bars, with blood alcohol levels ranging from 0.07% to 0.26%.
- Training restaurant and bar staff on responsible bar service can reduce the over-service problem. Even so, many bartenders who complete the training still serve visibly intoxicated pseudo-patrons, and other studies say the lessons of training dissipate in three to six months.
When over-served guests are involved in accidents causing death and/or serious injury, third-party lawsuits argue that the establishment’s (if not the server’s) negligence directly contributed harm. Damages can be substantial: A record $131 million, for example, was awarded in a 2017 lawsuit by a woman who was left a quadriplegic after a car crash caused by her husband. Her suit was against him and the Seattle area restaurant who she claimed had over-served him.
It underscores the need for restaurants and bars to establish responsible alcohol service programs that, through consistent training and reinforcement, help staff understand liquor liability exposures and be prepared to manage them. A comprehensive liquor liability program is essential to avoid situations that can result in fines, license suspension or civil litigation. 
Here’s what’s important to know.
Key elements of a liquor liability program
While liquor liability laws vary from one state to another, what remains consistent is the responsibility a business or individual server bears should a guest who is over-served or under-aged cause injury or property damage. That requires them to monitor behaviors and stop service when guests show signs of intoxication. Consequences can include fines, license suspension and civil litigation.
Every establishment that serves alcoholic beverages should have a liquor liability management program built around clear policies, consistent training and documentation. Here’s what should be covered:
- Any employee involved in alcohol service must go through formal training and certification.
- Written alcohol service policies are key, with mandatory staff sign-offs confirming completion of training.
- Policies must be reviewed annually and/or when regulations change.
- All incidents involving intoxicated or disruptive guests must be documented, delineating the time intoxication was first observed, when service was stopped, specific actions taken by staff actions in response, and witnesses who were present.
- Open communication is key, including employee debriefs following incidents.
Best practices to guide the way
Every liquor liability risk mitigation program should be designed around best practices spanning everything from training to operational controls to insurance management.
- Training and operations. Training is the cornerstone of a solid program. This covers core areas like identification verification, including showing staff how to recognize fake IDs, ways to spot an intoxicated patron, and ways to safely and responsibly refuse service. Maintaining current certifications (like TIPS (Training for Intervention Procedures) and ServSafe Alcohol is also a must. Not to be overlooked are the operational controls – physical and procedural – that can improve monitoring and reduce incidents. This includes ensuring optimal visibility of guest areas, and utilizing standardized pour tools or metered systems.
- The insurance component. The financial impact of alcohol related incidents is best managed through liquor liability insurance. It starts with an annual review, with a broker, of the liquor license insurance coverage, and insuring it is up to date with current operations and exposures. Another must is secure storage and accessibility of incident logs and training documentation.
- Good management hinges on good measurements. Good performance tracking speaks to diligence and identifies areas for improvement. Guest cut-offs should be tracked monthly or quarterly, and alcohol-related incidents should be regularly reviewed to detect trends. Also important is tracking trends in the percentage of staff trained and certified in liquor service management.A qualified broker with expertise in hospitality management can do more than ensure a restaurant or bar’s operations and exposures are up to date for liquor liability insurance purposes. The broker will be a trusted guide on best practices to avoid issues in the future. HubInternational.com.
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