Do you sell or distribute liquor, wine, or beer?
Claims result from common day accidents, be it when one of your regular customers has one too many glasses of wine and is involved in a car wreck driving home, or a guest falls down a flight of stairs in your restaurant while intoxicated. Whether you're a business owner who sells or serves liquor, an event planner who helps to control client parties or the host of a wedding or private function, you could be held liable for millions of dollars of damages and legal costs to defend yourself and your business. Liquor liability insurance provides coverage for businesses involved in selling or distributing liquor, wine, or beer.
Organizations that are in the business of selling alcohol have an extremely high exposure to liquor liability-related claims, and coverage for bodily injury or property damage as a result of an intoxicated patron is not insured by a typical general liability or business owner's policy. Most states have determined that businesses that sell, manufacture, or serve alcohol can be held vicariously liable for harm caused by an intoxicated patron, and several states now mandate that such high-risk businesses maintain a liquor liability policy.
Key Coverage Areas
Bodily Injury: Covers claims resulting from physical harm caused by an intoxicated individual, such as in fights or accidents.
Property Damage: Protects against damages caused to someone else's property by an intoxicated patron.
Legal Defense Costs: Covers the costs of defending the business in court against liquor liability claims, including attorney fees and court costs.
Assault and Battery Coverage: Protects if a fight or violent incident occurs on the premises, often related to alcohol consumption.
Coverage Limits: Liquor liability policies typically offer coverage up to specified limits, which can be adjusted based on the business’s needs and risk exposure.
How can we help?
Most insurance companies that provide liquor liability coverage have unique contractual terms and conditions. You will want to consult with an experienced insurance professional to ensure your policy doesn't have large exclusions or gaps. For example, policies may exclude coverage for emotional distress and mental anguish or not provide coverage for employees and those served illegally, such as someone who is under the legal drinking age.
While several states require organizations in the business of selling liquor to maintain a minimum coverage level, compulsory limits are typically inadequate to cover these types of claims. Consult with a knowledgeable insurance agent in this field to help you select an appropriate limit.
