In this blog we will cover all the benefits of Surety Bond Insurance and why you should definitely invest in it. It’s better to be safe than sorry when you’re in the business of selling alcohol.
Running a liquor store can be a risky business. You are always at risk of claims and liabilities, which is why small business liability coverage and Surety Bond Insurance are so important, especially given the fragile products you sell and the type of customers you deal with. And while you may still manage to run your business efficiently and with profit, most state governments would want more evidence of stability from your business.
That’s the reason why almost every state in the USA demands Surety Bond Insurance from liquor store owners. It acts as evidence of collateral should the business fail due to unfortunate circumstances. But that is not the only reason you should have Surety Bond Insurance.
How Surety Bond Insurance will cover losses in your liquor store?
It covers more than just your liquor store insurance
Surety Bond Insurance coverage is not limited to your liquor store business. It also covers transportation, manufacturing, storage, and sale of alcohol. These alcohol bonds are put in place to ensure that the company complies with the rules and regulations for the manufacturing and distribution of alcohol as per state laws.
It acts as evidence of rightful practices
Customers who purchase alcohol find it reaffirming when they see the Surety Bond Insurance certificate displayed in the liquor store. This acts as proof that the liquor store or company is following all the guidelines set by the state for the safe distribution of alcohol.
That means that the products sold at the liquor store are authentic and safe to consume. This can be one of the biggest motivators for customers to choose your store over another that doesn’t have the required certificates.
It opens doors to bigger opportunities
It’s easier to attract companies or customers looking to make bulk orders when they know that you follow all the ethical practices set by the government while distributing alcohol.
So when a festive season, anniversary, or any other celebration comes around, they would look at stores that they can rely on to make their purchases. And your store will be their preferred choice if you have Surety Bond Insurance on display.
It reduces competition
Even if there are strict guidelines for alcohol sales, many retailers still sell it illegally without the right certificates. However, the majority of potential customers would not prefer buying alcohol from such stores.
Instead, they would prefer a store that follows all the regulations and abides by the laws set by the government. So getting Surety Bond Insurance for your business will reduce local competition and make you the preferred alcohol retailer in your area of business.
To understand more about how proper insurance coverage can strengthen your compliance and protect your business, read our detailed guide on Liquor Liability Insurance – All you need to know.
It protects you against claims
A liquor bond is like a financial security bond that covers the financial liabilities you may face in your business. Along with your alcohol license, alcohol permit, and Liquor Store Insurance coverage, an insurance bond protects you from unnecessary claims and liabilities that may arise due to the unlawful sale of alcohol.
So as long as the payment of taxes is consistent and all the other practices are within the boundaries of the regulations, then you won’t have to worry about any liabilities.
To learn more about the benefits of liquor liability insurance and how it safeguards your business, visit our blog on Benefits of Liquor Liability Insurance.
Beyond Surety Bond Insurance
It’s just as important to get insurance for your liquor store as to have a liquor license, liquor and wine bonds, and also pay the alcohol tax by state. Besides, Surety Bond Insurance is one of the Liquor Store Insurance premiums. So you can get it all in a package from your business insurance provider.
It will surely be a financially wise decision to manage the Liquor Store Insurance cost better. If you want to know more, we have a dedicated blog on How to reduce your Liquor liability insurance rates?. Do check it out!
You can find the best Liquor Store Insurance that perfectly fits your needs at Exceed Insurance. Just key in your needs and specifics, and we will recommend the best and cheapest insurance coverages for liquor stores. If you have any further queries, then you can contact us at 855-539-2333 or write to us at info@exceedinsurance.com. We will get back to you.
FAQs
- What is a surety bond and how does it work?
A surety bond is a promise between three people. These are the customer, the business, and the company that gives the bond. The surety helps if the business does not do what it was supposed to. If the business does not do its job, the surety pays for the loss and later gets that money from the business. - What is surety bond insurance coverage?
Surety bond insurance coverage is a promise that the business will follow the rules and will do its job the right way. The bond helps the client when the business does not keep its promise. - Who needs a surety bond?
Many businesses need a surety insurance policy such as such as construction, car dealing, and running a liquor store. In these cases, the law often says the bond is a must. - What is an alcohol bond?
If a business sells or makes alcohol, it usually needs an alcohol bond. It ensures the business stays within the law and pays alcohol taxes on time. - What is a liquor license bond used for?
A liquor license bond is a promise that your business will follow alcohol laws. If your business faces a penalty for breaking rules, the bond helps with the payment.
