How to Protect Your Customers & Business When You Serve Alcoholic Beverages

One of your patrons has spent the better part of his evening parked at your restaurant's bar drinking martinis. He seems like a nice guy, but frankly, as the evening wears on he seems to have gotten a little boisterous and loud.

He was composed and articulate when he walked through the door, but now he is slurring his words, and stumbles on his way from his bar stool to the restroom. Still, your bartender keeps pouring his drinks. At $7.50 a pop for top-shelf vodka, and the fact that the customer is flirting with her and wearing a $10,000 wristwatch, she is looking forward to a nice, fat tip at closing time.

The next morning you read that the customer was involved in an accident that caused serious injury to another driver and passengers. You shake your head, and say that's a shame. Your response over coffee that morning is a far cry from your reaction to the lawsuit filed against your business and you by the folks who were hurt in the accident. And since alcohol liability is a favorite subject of the press, it is very possible that the local newspaper will follow the case and cause negative publicity for your restaurant. (See "Shattered Lives and Bad Press" below.)

Many states have enacted "dram shop" acts that create a civil cause of action (i.e. the basis for a lawsuit) against a business if the sale of alcohol to an intoxicated person results in injury to a third party. These laws also create liability for businesses that serve any alcohol to a minor who injures another person as a result. Not only do you need to understand the dram shop laws in your state, but also you need to make sure that anyone in your operation who serves alcohol understands and has training in them. You also need to insure your restaurant for alcohol liability.

Even with the best training and preparation, you can't guarantee that your business will never be the subject of an alcohol liability suit; however, your diligence can go along way toward fending off such actions and prevailing if one is filed. Moreover, a few simple measures can protect innocent third parties from alcohol abuse within your four walls.