Liquor Liability Insurance
Understanding Liquor Liability Insurance
What Is Liquor Liability Coverage?
Liquor liability insurance is essential for businesses that sell and serve alcohol. Under many State’s Dram Shop Laws serving one alcoholic beverage to a patron, even if they are not intoxicated at the moment, and they then move on to another establishment to further drink – establishes legal liability to drag your establishment into a “Liquor Liability” claim.
A key coverage element to consider when purchasing Liquor Liability coverage is to maximize the “Assault & Battery” coverage within the Liquor Liability Coverage form.
Key Coverages of Liquor Liability Insurance
Coverage Details
Liquor liability insurance can help cover claims involving:
- Assault and Battery: If a customer you served alcohol to physically injures another person in an altercation.
- Drunk Driving: If an intoxicated individual causes a car accident resulting in bodily injury or property damage.
- Property Damage: Damage caused by an intoxicated customer to someone else’s property.
Why It’s Essential
LIquor Liability claims tend to settle higher than General Liability claims. General Liability policies typically exclude coverage for bodily injury and property damage related to the sale service of alcohol. Therefore, Liquor Liability insurance is a must for any business involved in the sale or service of alcohol.
Ways to Save Money
To manage and potentially reduce your liquor liability insurance costs, consider:
- Bundling: Combine Liquor Liability insurance with your General Liability policy. These can then be combined into one “Package Policy”.
- Risk Management: Implement employee alcohol training programs such as “TIPS” and other “in house” management techniques such as making sure the floor is always dry and not slippery, or never pouring a cold drink with ice into a glass that just came out of the dishwasher. Believe it or not two of the biggest claims we have seen for restaurants resulted from hot glasses shattering in patron’s hands from this sudden temperature difference.
Common Questions About Liquor Liability Coverage
Host Liquor Liability vs. Liquor Liability
- Liquor Liability Coverage: This helps protect businesses that sell, serve, or distribute alcohol from claims related to bodily injury or property damage caused by intoxicated patrons. It is usually added as an endorsement to a general liability policy.
- Host Liquor Liability Coverage: This is for businesses that don’t sell alcohol but allow consumption on their premises, such as during special events. This coverage is typically included in a general liability policy.
General Liability and Liquor Liability
General liability insurance usually includes host liquor liability coverage, protecting businesses that allow alcohol consumption but don’t sell it. However, if your business sells or serves alcohol, you need a separate liquor liability policy, as general liability insurance will not cover these risks.
Securing Your Business with Liquor Liability Insurance
Getting a Quote
To get a quote for liquor liability insurance, you’ll need information about your business’s alcohol sales, location, and the type of establishment you run. Please refer to our application tab on our home page.
