What is Liquor Liability Insurance
If you are a business that serves, manufactures, or sells alcohol, liquor liability is important to have. This type of policy will protect you and your business in the unfortunate event that a customer causes damage or injury after being served alcohol by your business.
A basic general liability policy excludes liquor liability coverage for businesses who generate a profit from alcohol. Liquor liability insurance is designed to fill this gap in coverage and may either be added as an endorsement to a general liability policy or purchased separately.
What does it cover?
- If a customer you served alcohol to physically hurts another person.
- If an intoxicated person your business served or sold alcohol to drives drunk and damages property or causes an accident that leaves another driver with a bodily injury.
- A customer under the influence of alcohol causes damage to another person’s belongings.
How does it work?
The policy provides coverage for legal fees, settlements, and medical costs associated with bodily injury or property damage caused by an intoxicated person, who was served or sold liquor by the policyholder.
Liquor liability insurance costs vary. It can cost your business several hundred to several thousand dollars a year to get coverage. When you get a quote, insurance companies can use different factors to determine your liquor liability insurance cost. These factors can include industry, location, liquor sales
Should I get Liquor Liability Insurance?
Businesses that typically need liquor liability insurance coverage include:
- Restaurants
- Bars and taverns
- Caterers
- Breweries and wineries
- Grocery stores
- Liquor stores
Liquor liability insurance is important if your business is in a state with dram shop laws. These laws allow businesses to be held liable if they sell or serve alcohol to intoxicated individuals who cause an injury or damage property. Thirty states have dram shop laws in place.
Keep in mind, liquor liability won’t replace a general liability policy. The business types listed above, and others like them, may need to carry both forms of insurance.
The policy provides coverage for legal fees, settlements, and medical costs associated with bodily injury or property damage caused by an intoxicated person, who was served or sold liquor by the policyholder.
If you have more questions or would like to include liquor liability protection into your business coverage, reach out to one of our experienced agents today.
