Title: Balancing Liability Laws: Addressing Rising Premiums in Montana
Introduction:
Montana insurance commissioner, Troy Downing, discusses the issue of rising premiums for liability coverage in certain areas and industries. While it makes sense for premiums to increase in areas at risk of forest fires, the issue of liability coverage is not always straightforward. Liability laws that are too broad can lead to higher premiums, making it difficult for small businesses to stay afloat. In this article, we explore Montana’s liquor liability laws and the steps taken to address rising premiums.
The Rising Costs of Liquor Liability Coverage:
Liquor liability, or the liability of a bar or restaurant if they serve a customer and it results in an injury or loss, has become a major concern for small business owners in Montana. Premiums have been increasing rapidly and many businesses are struggling to keep up. One example that arises is if a waiter in a restaurant serves a drink to an apparently sober customer, and that same customer goes elsewhere and drinks more until he is intoxicated, and then harms another due to his intoxication. Should the waiter be held responsible? The liability laws in Montana are too broad, and this is causing premiums to increase at an alarming rate.
The Solution: Clarifying Liability Laws
The first step in addressing issues like these is to look at the liability laws on the books and decide if they make sense. If not, the next step is to clarify and modify these laws to control what may be unreasonably broad while maintaining a victim’s ability to seek restitution and damages where warranted. Senator Steve Fitzpatrick sponsored Senate Bill 107 to address this alcoholic beverage liability issue by outlining the circumstances in which a server may be liable. This still allows an aggrieved person to seek recovery for actual lost economic damages while allowing punitive damages under certain circumstances. SB 107 protects consumers and small businesses and clarifies the liability statement to help curb increases in liability premiums.
The Importance of Reasonable Tort Reform
If we can find places where reasonable tort reform helps reduce liability while protecting the public interest, we have the potential to make it easier and less expensive for businesses to operate, grow, innovate, and hire more employees in Montana. Senator Fitzpatrick and the Montana Tavern Association took a great initiative by addressing the root cause of rising premiums. Governor Gianforte signed the Senate Bill 107 into law, providing a solution to the issue of rising premiums for liquor liability.
Additional Piece:
Reducing Liability and Boosting Economic Growth: Lessons from Montana
Montana is a state known for its vast natural landscapes and vibrant tourist industry. From its outdoor recreational activities to its mountain ranges and wildlife attractions, Montana has become a sought-after destination for travelers from all over the world. However, the state’s economy is not just reliant on tourism. Small businesses and entrepreneurs are the backbone of Montana’s economy, driving growth, innovation, and employment opportunities.
In light of the recent rise in premiums for liquor liability coverage, it is crucial to find ways to reduce liability while promoting economic growth. Reasonable tort reform, like the measures taken in Senate Bill 107, can provide a solution. As Montana’s liquor liability laws become clearer and more defined, businesses can operate with more confidence, knowing that they will not be held liable for actions that are beyond their control.
Moreover, reasonable tort reform can promote entrepreneurship and innovation by making it easier for businesses to operate and grow. When liability laws are too broad, businesses must allocate more resources to risk management, preventing them from investing in new products, services, and ideas. By reducing the cost of insurance, businesses can invest more in their growth and expansion efforts, leading to more job opportunities and economic prosperity for the state.
To make this happen, lawmakers must encourage a balanced approach to liability laws, one that takes into account the needs of both businesses and consumers. In Montana, Senator Fitzpatrick’s efforts have shown that reasonable tort reform is possible. By working together, businesses, consumers, and lawmakers can find solutions that promote growth, innovation, and economic prosperity.
Summary:
Montana insurance commissioner, Troy Downing, discusses the issue of rising premiums for liability coverage in certain areas and industries. One such area is liquor liability, where the liability laws are too broad, leading to higher premiums and making it difficult for small businesses to stay afloat. Senator Steve Fitzpatrick sponsored Senate Bill 107 to address this issue by outlining the circumstances in which a server may be liable. This still allows victims to seek recovery for economic damages while allowing punitive damages under certain circumstances. Reasonable tort reform can make it easier and less expensive for businesses to operate, grow, innovate, and hire more employees in Montana. By reducing the cost of insurance, businesses can invest more in their growth and expansion efforts, leading to more job opportunities and economic prosperity for the state.
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As a Montana insurance commissioner, I am often asked about the high premiums on certain lines of insurance. An example is the increase in premiums in areas at risk of forest fires. This makes intuitive sense: if the risk of fire and loss is greater, the premium increases to ensure that the insurance company can cover your possible losses.
One area of insurance that is not always so obvious is liability coverage. In public policy, it is important that the law address damages to someone when there is obvious negligence that contributed to the loss or injury. However, sometimes the law is too broad and covers more than what a normal person would consider reasonable.
A simple example in Montana is liquor liability: the liability of a bar or restaurant if they serve a customer and it results in an injury or loss. In recent years, I have been contacted by several bar and restaurant owners regarding the rising costs of insuring this liability. Premiums were growing rapidly, and these small business owners faced the very real problem of not being able to pay their premiums to stay in business.
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The question arises by itself: if a waiter in a restaurant serves a drink to an apparently sober customer, and that same customer goes elsewhere and drinks more until he is intoxicated, and then harms another due to his intoxication, should he be held responsible? the waiter of the original restaurant? ?
The first step in addressing issues like these is to look at the liability laws on the books and decide if they make sense. If not, the next step is to clarify and modify these laws to control what may be unreasonably broad while maintaining a victim’s ability to seek restitution and damages where warranted.
This session, Senator Steve Fitzpatrick sponsored Senate Bill 107 to address this alcoholic beverage liability issue by outlining the circumstances in which a server may be liable. This still allows an aggrieved person to seek recovery for actual lost economic damages, while allowing punitive damages under certain circumstances. SB 107 protects consumers and small businesses and clarifies the liability statement to help curb increases in liability premiums.
If we can find places where reasonable tort reform helps reduce liability while protecting the public interest, we have the potential to make it easier and less expensive for businesses to operate, grow, innovate, and hire. more employees in our great state.
I applaud Senator Fitzpatrick and the Montana Tavern Association for addressing this root cause of rising premiums, and Governor Gianforte for signing this into law.
Troy Downing is the Commissioner of Securities and Insurance, Auditor for the State of Montana. Commissioner Downing is a two tour combat veteran, businessman and entrepreneur.
https://helenair.com/opinion/columnists/troy-downing-tort-reform-lowers-costs-on-small-businesses/article_c40c35cc-fb1a-11ed-88f3-bf26377b6d2d.html
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