Category: Commercial Insurance

Lake Minnetonka’s restaurants, bars, and event venues stay busy well after the boats come out of the water, with holiday parties filling calendars from Thanksgiving through New Year’s Eve. For any business that sells alcohol, that busy season is a good time to understand Minnesota’s Civil Damages Act, the state’s dram shop law.

What the Civil Damages Act Does

Under Minnesota Statute 340A.801, a person injured by an intoxicated individual can bring a claim directly against the licensed business that caused or contributed to that intoxication through an illegal sale. The intoxicated person generally can’t sue the business for their own injuries from voluntary drinking.

What Counts as an Illegal Sale

• Serving someone who is obviously intoxicated
• Serving anyone under 21
• Selling outside permitted hours or days

Key Rules Business Owners Should Know

1. Insurance is required. Minnesota generally won’t issue or renew a retail liquor license unless the business shows proof of financial responsibility for this type of liability, usually through liquor liability insurance.
2. Notice comes first. A claimant’s attorney must serve written notice on the licensee within 240 days of taking the case, or the claim generally can’t proceed.
3. Lawsuits have a deadline. Claims are generally subject to a two-year limit from the date of injury.
4. General liability isn’t enough. Most general liability policies exclude claims tied to selling alcohol, which is why liquor liability is a separate coverage.

Holiday Season Considerations

Private parties, catered events, and community festivals each raise their own questions. Temporary and festival licenses can carry insurance requirements too. Staff training on recognizing intoxication and checking IDs helps reduce risk, and incident logs can help if a claim comes up later.

Wiser Insurance Agency in Mound, MN can review your commercial insurance and liquor liability limits before the holiday rush. Policy wording varies, and a Minnesota attorney can help with specific claims. Businesses around Mound, MN and Lake Minnetonka can reach out to Wiser Insurance Agency, and browse our insurance blog for more business coverage topics.

Commercial insurance is a vital tool for protecting your business, but it’s important to understand what your policy does, and doesn’t, cover. Insurance exclusions are specific situations or risks that your policy won’t protect against, and overlooking them can lead to costly surprises. Let’s explore what every business owner should know about exclusions and how to address them.

What Are Insurance Exclusions?

Exclusions are conditions or events that are not covered by your commercial insurance policy. For example, a standard property insurance policy may exclude damage caused by floods or earthquakes. Similarly, liability insurance might not cover intentional acts or certain types of professional errors. Wiser Insurance Agency works with businesses in Mound, MN to help them understand these exclusions and find solutions to fill coverage gaps.

Common Exclusions in Commercial Insurance

While exclusions vary by policy, here are some common ones to watch for:

• Natural Disasters: Events like floods, earthquakes, or hurricanes may require separate coverage.
• Employee Injuries: Workers’ compensation insurance is typically needed to cover workplace injuries.
• Professional Errors: Mistakes made during professional services may require professional liability insurance.
• Intentional Acts: Damage or harm caused intentionally is usually excluded.

Understanding these exclusions can help you avoid surprises and ensure your business is fully protected.

How to Address Exclusions

If your policy has exclusions that concern you, there are ways to address them. You can purchase additional coverage, such as flood insurance or professional liability insurance, to fill the gaps. Regularly reviewing your policy with an experienced insurance provider can also help you identify exclusions and find solutions. Wiser Insurance Agency has years of experience helping businesses in Mound, MN navigate their insurance needs and customize their coverage.

Protect Your Business with Confidence

Knowing what your commercial insurance policy excludes is just as important as knowing what it covers. By understanding exclusions and working with a trusted provider, you can ensure your business is prepared for any situation. Contact Wiser Insurance Agency today to learn more about your options and find the right coverage for your business. Visit our website here.