A Complete Guide to Serving and Hosting Responsibly

Chapter 3: Liquor Liability Lawsuits: Everything You Need to Know


Few things strike fear in the heart of an American business owner or individual more than the prospect of being sued. Perhaps that's because in 2008 alone, tort liability cost small businesses (those with less than $10 million in annual revenue) more than $105.4 billion, according to the U.S. Chamber Institute for Legal Reform study "Tort Liability Costs for Small Business."

Relatedly, the actuarial firm Towers Watson reports in their "2011 Update on Tort Cost Trends" that the total expense of all torts in the U.S. cost $264.6 billion in 2010. These lawsuits cost U.S. citizens roughly $857 per person.

No wonder business owners and individuals shiver at the thought of facing a lawsuit! Even if a case is ultimately dismissed, the cost of legal defense fees alone can be enough to bankrupt a person or a small business. So what can you do to fend off the chance of a liquor liability lawsuit?

To build a risk management plan, first you have to know what you're dealing with. Let's start peeling back the layers behind these lawsuits so you know what you're up against. In this chapter, we'll look at how liquor liability lawsuits work and what to do if you're sued.

Next: Part 1: How Do Liquor Liability Lawsuits Work?

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