Liquor Liability
Risk Management
Our team of experts is dedicated to providing you with a comprehensive assessment of your risks and quote comparison from our broad network of insurers while ensuring that you have the essential knowledge to make informed decisions on Liquor Liability insurance.
The Basics of Liquor Liability Insurance
Liquor liability insurance is a type of commercial general liability insurance that encompasses bodily injury, property damage, and personal injury claims against you or your business if someone gets hurt due to being served alcohol. For companies that serve liquor, this type of insurance is essential in order to protect against the potentially devastating financial consequences of an alcohol-related incident. Liquor liability policies can be customized to meet the specific needs of a business, and premiums will vary based on the level of coverage selected.
Liquor liability insurance is available to all kinds of establishments that serve alcohol, including:
Restaurants
Bars
Hotels
Clubs
Grocery stores that sell liquor
Liquor stores
Small events
Special events, like weddings and parties
Many states require businesses with liquor licenses to have this type of coverage. Some states mandate that bars and restaurants have this insurance before renewing their liquor licenses. Even if liquor liability insurance isn't a requirement in your state, it is vital to have this type of coverage for your business. Liquor liability coverage can help provide coverage for the following:
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Claims arising from the sale or service of alcohol, including claims for personal injury or property damage
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Costs of damages and injuries caused by intoxicated patrons
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Cost of legal defense in case of a lawsuit arising from the sale or service of alcohol
Key Coverage Provisions
Liquor liability insurance helps protect businesses from claims arising from serving alcoholic beverages. Such as:
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Bodily injuries from a third party
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Legal costs
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Property damage from a third party
Third-Party Bodily and Property Damage Liquor liability insurance can help cover legal and medical expenses and any damages awarded against your business by a court of law. If a patron or a customer injures themselves or someone else while intoxicated, their medical bills would be covered under liquor liability insurance.
Legal Expenses Liquor liability insurance can help pay the following if a lawsuit is filed because of an over-served customer:
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Expenses in court
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Attorney's fees
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Settlements
What’s Typically Not Covered?
While Liquor liability insurance covers most liability claims that occur due to serving alcoholic beverages, Liquor liability coverage would not cover some liability claims, such as the ones listed below:
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Slander and Libel: General liability insurance can cover libel and slander claims as long as the policy doesn't exempt alcohol-related claims.
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Harm to your business property is not covered by liquor liability insurance, even if caused by an impaired client. When your business property is destroyed or stolen, commercial property insurance can assist cover the costs of repairing or replacing it.
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Incidents Resulting from Underage Drinking. These include claims arising from the sale of alcohol to minors and claims arising from using fake IDs.
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The insurance company will not cover the medical bills if a fight breaks out and someone is injured. Insurers also will not cover any property damage that results from the fight.
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Generally, liquor liability insurance does not cover any damage or injury that is not a direct result of the intoxication of the insured person.
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In incidents when someone becomes intoxicated and then drives a car into a building, the insurance company will not pay for the damage to the building.
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