Liquor Liability Insurance

If you sell, serve, or assist in the purchase or use of liquor, you are open to a liability claim. This includes restaurants, bars, nightclubs, and taverns. Liquor Liability insurance makes sure you are covered if someone gets drunk and hurts themselves, others, or causes property damage. While it’s logical that the inebriated person should be the one to pay, in reality the business that served the alcohol could be liable for injuries, damages, or both that occurred as a result of actions, behaviors, or conduct of a patron who drank too much.

Liquor Liability Insurance Policies

  • The terms surrounding of a liquor liability policy vary, but there are some commonalities.
  • Most states in the US require establishments that sell alcohol to carry liquor liability insurance.
  • Most liquor liability insurance policies exclude the selling of alcohol illegally, such as selling liquor to a minor.
  • Most liquor liability policies are sold as a standalone policy or packaged with a general liability policy.

What Liquor Liability Insurance Covers

As you might expect, a good deal of alcohol-related liability claims filed against bars, taverns, and restaurants are a result of liquor-induced fights or altercations. In fact, the mere act of an employee escorting an unruly patron to the exit is frequently all that is necessary to trigger an assault and battery allegation. Therefore, assault and battery coverage should be included in your liquor liability policy. Lastly, litigation costs, including the fees to retain an attorney and court costs are covered under a liquor liability policy.

For a needs analysis of your unique situation, give us a call. We’ll help guide you to what type and how much coverage is best for your business!