Liquor liability insurance is a type of insurance that protects businesses ward that serve, sell, distribute, and manufacture or supply alcohol. It helps cover the damage they cause, whether it’s to others or themselves. This type of insurance is often required by law for businesses that have liquor licenses.
For businesses that sell or serve alcohol, the risk is liability is ever-present. It’s not enough to simply serve responsibly-even with the best intentions, accidents can happen. That’s where liquor liability insurance comes in to safeguard businesses from unexpected and allow them to continue serving up drinks with confidence.
What Does Liquor Liability Insurance Cover?
For any businesses that serve or sell alcohol, there are always risks of someone getting out of control which could lead to injuries, property damage, or even legal troubles. Here is the coverage provided by the liquor liability policy:
- Third-party bodily injuries to others, such as guests or customers who are injured by an intoxicated person. Liquor liability policy will cover the costs such as the medical bills, and legal expenses if the injured person sues your business
- Property damage caused by an individual who became intoxicated. Liquor liability insurance will cover the costs of repairing and replacing the damaged property caused by an intoxicated individual.
- Legal fees and other expenses related to claims or lawsuits filed against the business. Liquor liability covers your legal costs such as, from attorney’s fees and court costs to a court-ordered judgment or settlement
In some cases, liquor liability insurance may also cover loss of income due to a suspension of the business‘s liquor license. It is important to check the specific policy to see what exactly matches your business needs.
What Does Liquor Liability Insurance Not Cover?
Liquor liability coverage covers a lot, but it doesn’t cover everything. There are some situations where the insurance doesn’t apply, and it’s important to understand what these are, such as
- Damage to your business property
- Acts done intentionally
- Criminal activity
- injuries or damages caused by the business owner
- And injuries or damages that occur off-premises.
Why Is Liquor Liability Cover Important?
Liquor liability insurance is a very important insurance. In cases where someone has too much to drink, and starts doing things he/she wouldn’t normally do such as trip, spill, or even start a fight, then liquor liability coverage will cover the costs of any damage made, such as bodily injuries and property damage.
Furthermore, this way, it allows alcohol seller, distributor, and manufacturer to continue their business without having to worry about the financial consequences of any mishaps.
Who Needs Liquor Liability Cover?
These are certain types of businesses that typically need liquor liability cover:
- Bars and restaurants that serve alcohol
- breweries and wineries
- Liquor stores
- Hotels and resorts that serve alcohol
- Grocery stores
Liquor liability cover is different from general liability insurance, and it is advisable to purchase both.
Frequently Asked Questions
Why Is Liquor Liability Insurance Important For My Business?
Liquor liability insurance is essential for businesses dealing with alcohol because it provides financial protection in case a customer causes harm or damage after consuming alcohol provided by your establishment. This coverage helps to mitigate the risks associated with alcohol-related accidents or incidents.
What Does Liquor Liability Insurance Typically Cover?
Liquor liability insurance generally covers legal costs, settlements, medical bills, and other damages resulting from alcohol-related incidents. This may include claims of assault and battery, drunken driving accidents, and property damage caused by intoxicated patrons.
How Much Does Liquor Liability Cover Cost?
The cost of liquor liability coverage varies depending on several factors, such as the size of your business, the type of establishment, the location, and the level of coverage you require. It’s best to consult with an insurance agent or broker to determine the appropriate coverage and premiums for your specific situation.
Is Liquor Liability Policy Required By Law?
Liquor liability insurance is not typically required by law, but some states or municipalities may mandate it for businesses that sell, serve, or distribute alcohol. Additionally, some lease agreements or event contracts may necessitate the purchase of liquor liability cover.
Does General Liability Cover Liquor-related Incidents?
General liability insurance usually excludes coverage for alcohol-related incidents. Liquor liability insurance is a separate coverage specifically designed to address the unique risks associated with businesses that sell, serve, or distribute alcohol.
How Can I Minimize the Risks of Alcohol-related Incidents in My Business?
Implementing responsible alcohol service practices can help minimize the risks of alcohol-related incidents in your business. This includes staff training on recognizing signs of intoxication, promoting alternative transportation options, offering non-alcoholic beverages, and strictly enforcing policies related to over-serving and underage drinking.
How Do I Know If My Business Needs Liquor Liability Insurance?
If your business sells, serves, or distributes alcohol in any capacity, it’s advisable to consider obtaining liquor liability cover. This includes establishments such as bars, restaurants, caterers, event planners, and even retail stores that sell alcohol. By having this coverage, you’ll be financially protected against potential claims or lawsuits resulting from alcohol-related incidents.