Liquor Liability
What Is Liquor Liability Insurance?
What Is Liquor Liability Insurance?
Businesses that are involved in the manufacturing, sale or purchase of liquor face unique liabilities. When alcohol is used in business, the potential exists for an employee or a patron to be drunk and cause bodily injuries or property damage. It may seem that the drunk person should be the one held responsible, but the business that served the alcohol could be held liable as well.
Due to the risks involved with drinking, restaurants, bars and taverns that serve it are always advised to invest in liquor liability insurance. These sorts of claims are not covered by a commercial general liability policies(CGL), which is why liquor liability insurance is recommended as an investment not only to restaurants that serve alcohol, but to any businesses that sells, serves or facilitates the use or purchase of alcohol.
Businesses of all kinds can have a liquor liability exposure if they:
Gift alcoholic beverages to clients, employees or vendors at holidays or special occasions.
Sponsor an offsite trip that includes the consumption of alcoholic beverages.
Host a company party for employees, vendors, clients etc. and make alcoholic beverages available.
What Does Liquor Liability Insurance Cover?
A liquor liability policy is intended to provide financial coverage for your business against covered claims of losses, damages or injuries brought against the business that a patron of your business caused due to intoxication.
Liquor liability policies can include the following coverages:
Assault and battery coverage: This can be its own policy or an add on to your liquor liability policy. It can include assault and battery of patrons, by patrons, and can also benefit businesses who hire security, in the case that a claim is brought against security personnel.
Defense Costs: In most types, the biggest cost from a claim is your attorney. This portion of the policy can cover the cost of your legal defense, whether or not the claim is found to be valid.
Employee Inclusion: If employees are drinking on the job, regardless of rules, it is important to cover them in your policy. A good liquor liability insurance policy will include employees as patrons, because as experienced restaurant owners know, no rules will stop the determined rule-breaker amongst your staff from enjoying a drink or two on the job. Both you, and your insurance policy, should be prepared for potential trouble because of this.
Damage Includes ‘Mental Damages’: If a patron claims they suffered in non-physical ways, like stress, it is important to include this in your coverage plan.
In some cases, your business may face lawsuits regarding claims that are found to be invalid. In these cases, your liquor liability insurance can cover the costs associated with the lawsuit, including legal counsel, so that your business does not have to.
How to Get Started
Properly insuring every business is critical to preventing financial ruin in the case of an damages, injuries, or a false claim. Every business is unique, and requires insurance policies tailored to its needs. Our insurance professionals can help you to either evaluate or find your liquor liability insurance.
Want a Free Liquor Liability Insurance Quote?
Grow Green Insurance offers unique liquor liability solutions such as:
• Specialty carriers for every industry
• Preferred pricing through partnered relationships
• “Pay What You Want” in Broker Fees