Liquor Liability Insurance

Liquor Liability Insurance

While alcohol is often used for relaxation or as part of a celebration, it also has the potential to make things messier — that goes for insurance as well. If you own an establishment that allows for the consumption of alcohol, you may be held legally and financially accountable for injuries or damages caused by your patrons while under the influence, even if you did not directly sell or serve it to them. Liquor liability exists to cover that risk by providing coverage beyond what may be included in your normal general liability policy.

Bars have an obvious need for this type of insurance, but it also applies for businesses like theaters where drinking is allowed although it may not be their main source of revenue. When evaluating whether your business needs a stand alone liquor liability policy, you need to first consider your state’s alcohol regulations, the extent of your commercial exposure, and any existing coverages you may have. It’s important to carry out this process with the guidance of a qualified professional that can help you find comprehensive coverage that fits within your budget.

Host Liquor Liability vs Standard Liquor Liability

There are two types of liquor liability insurance that protect businesses that either serve alcohol or allow the serving of alcohol on their premises: host liquor liability and just plain liquor liability. This includes restaurants, bars, breweries, clubs, concert venues, and more.

• Host Liquor Liability is best for businesses that may allow for the consumption of alcohol during an event without direct selling, serving, or making it. As such, it can be purchased as a short-term policy.
• Standard Liquor Liability, aka “dram shop insurance” or just liquor liability, is for businesses that are selling drinks directly to customers and includes coverage for any liability they may face related to the serving of alcohol.

Both types of policies may cover injuries and property damage caused by consumption as well as related legal fees, and both are often subject to the aforementioned exclusions.

If you have questions about exclusions or what type of liquor liability insurance you need, fill out the quote request form today. We’ll get you set up for a free consultation and on your way to being protected at a price you can toast to.