Common Mistakes That Increase the Insurance Cost for a Liquor Store
- Nate Jones, CPCU, ARM, CLCS, AU
- 2 days ago
- 2 min read
Running a liquor store comes with more insurance risks than most retail businesses. High‑value inventory, cash transactions, theft exposure, liquor liability concerns, and late‑night hours can all influence your premiums. But many liquor store owners unknowingly make mistakes that increase the cost for liquor store insurance, sometimes dramatically. Below are the most common errors that drive up insurance premiums and how to avoid them.
1) Weak Security and Loss‑Prevention Measures
Security is one of the biggest pricing factors for liquor stores. Mistakes that raise your premium include:
Old or low‑resolution surveillance cameras
No monitored alarm system
Poor exterior lighting
No reinforced or barred windows
Weak cash-handling procedures
No time‑delay safe
Improving security helps reduce theft, burglary, and vandalism claims, the most common losses in liquor stores. Many local law enforcement agencies and alcohol regulatory boards publish crime‑prevention tips for retail alcohol businesses.
2) Under-reporting or Over-reporting Inventory
Carriers price your liquor store business insurance quote based on your:
Average inventory value
Peak seasonal inventory
High‑end product exposure
Under-reporting creates uncovered losses, while over-reporting inflates your premium.Accurate monthly and seasonal values help avoid unnecessary cost increases.
3) Poor Documentation of ID‑Checking and Alcohol Sale Procedures
Improper ID‑verification practices increase liquor liability risk. Carriers may charge higher premiums when:
Staff are not properly trained
ID scanners are not used
Compliance logs are missing
Past violations are not documented or corrected
A strong liquor‑compliance program shows insurers that your risk is properly managed.
4) Failing to Maintain a Clean Claims History
Frequent claims, theft, slip‑and‑fall, liquor liability, or property damage, will raise your insurance costs for years. Common problems include:
Spills not cleaned promptly
Poor floor maintenance
Unsecured walkways
No wet‑floor signage
Loose mats or rugs
Reducing preventable accidents is one of the fastest ways to lower long‑term costs.
5) Not Working With a Specialist in Liquor Store Insurance
General insurance agencies often miss essential endorsements like:
Crime & employee dishonesty
Spoilage/food & beverage coverage
Equipment breakdown
Business income coverage
Mistakes in coverage selection cause both higher premiums and coverage gaps.
Working with a specialist ensures the right policy structure at the best price.
Get the Right Coverage at the Right Cost for Your Liquor Store
Not all insurers write liquor stores, and common mistakes, security gaps, inaccurate inventory reporting, poor documentation, and missed coverages, can drive up your insurance costs. Wexford Insurance partners with top‑rated carriers that specialise in liquor store risks, helping owners secure proper limits, deductibles, and policies at competitive pricing.
👉 Request your liquor store business insurance quote from Wexford Insurance today and keep your inventory, income, and business fully protected.
