Liquor Liability Coverage
Liquor liability coverage helps protect business that sell, manufacture, serve or distribute alcohol. It can cover claims of bodily injury or property damage that an intoxicated person causes after they are served alcohol.
FAQs
What does liquor liability cover?
- Repair costs to fix property damage that an intoxicated person causes
- Medical expenses that may result if a person under the influence of alcohol causes injuries like if your business served someone alcohol and that person drove while drunk or if a customer you served alcohol to physically hurts another person
- Legal costs
- Settlements or judgement
What is host liquor liability?
Host liquor liability protects businesses that don’t make a profit from providing alcohol but who allow people to drink liquor on their business premises. Host liquor liability is typically included in general liability policies, while liquor liability is not.
Example: An accounting firm serves alcohol at a company party and an intoxicated employee strikes another vehicle while driving home. A lawsuit is filed against the accounting firm for the other driver’s injuries. Since the accounting firm doesn’t profit from serving alcohol, their general liability policy may cover the claim. Alternatively, if the business was a bar instead of an accounting firm, the bar would need liquor coverage to cover the accident since they are in the business of selling and servicing alcohol.
Does my business need liquor liability coverage?
Some business that may need liquor liability coverage are: restaurants, bars, breweries and wineries, caterers, liquor stores and convenience stores. Liquor liability insurance is especially important if your business is in a state with dram shop laws (like Colorado.) These laws allow business to be held liable if they serve or sell alcohol to intoxicated people who cause property damage or an injury. Sometimes, business are legally required to get liquor liability coverage before they obtain a liquor license.
Keep in mind that liquor liability insurance does not replace a general liability policy.
How much does liquor liability coverage cost?
Several factors are used to determine the cost of liquor liability insurance, such as: type of business, location, amount of sales and limits. Our specialists can work with you to understand your risks and help you get the coverage you need.
What can I do to decrease my liquor liability risk?
While it can be challenging there are several ways businesses can reduce their liquor liability exposure, such as:
- Encourage customers to not become too intoxicated
- Promote the availability of non-alcoholic beverages
- Send servers to training and educational courses
- Urge clients to take alternate transportation like a taxi or rideshare