What Does Liquor Liability Insurance Cover?

Although it may be enjoyable for your customers as well as lucrative, selling and serving alcohol can expose your business to significant risks. Intoxicated parties may be more likely to engage in dangerous or unpredictable behavior, which may put your organization at risk of being liable for losses and damages they cause. Given these inherent risks and exposures, your business should consider the benefits of maintaining adequate liquor liability insurance.

What Is Liquor Liability Insurance?

By acquiring a suitable liquor liability insurance policy, your company may be able to protect itself financially from alcohol-related incidents for which you may bear legal responsibility. This coverage should be considered an essential loss control measure for any business that regularly serves, sells or distributes alcohol, such as bars, restaurants and grocery stores. Moreover, the state may require liquor liability insurance before a business acquires a liquor license.

Even if your organization’s operations do not regularly involve serving or selling alcohol, you may still require some liquor liability coverage in certain circumstances. For instance, if you host an annual event with alcohol present, such as a gala or awards ceremony, host liquor liability insurance may be advisable. A commercial general liability insurance policy may include host liquor liability coverage, but you should verify this by reviewing your coverage details with your insurance agent.

What Does Liquor Liability Insurance Include?

Liquor liability insurance may provide critical financial assistance in the wake of many common alcohol-related incidents. Intoxicated guests, clients and customers may cause accidents, commit crimes, or inflict harm, and your business might bear legal responsibility for their actions. Fortunately, an adequate liquor liability policy generally includes coverage for the following:

• Third-party bodily injuries—This coverage may help pay for financial losses, such as medical bills, if one of your guests becomes intoxicated and physically harms a third party.
• Third-party property damage—If you sold or served someone alcohol who then damaged another party’s property, such as by crashing their car while intoxicated, this coverage may help pay for resulting financial losses.
• Legal costs—Even if your business is innocent of wrongdoing, lawsuits can be costly. Your liquor liability insurance may provide financial assistance for legal expenses if someone sues you for a covered alcohol-related incident, including your attorney fees and resulting settlements or court-ordered judgments.

Get the Right Coverage

Alcohol can create or exacerbate significant risk levels even for the most experienced and responsible businesses. Without adequate liquor liability insurance, a single incident could have long-lasting ramifications for your organization’s finances and future.

For over two decades, Clearwater Partners has worked tirelessly to provide optimal insurance solutions for businesses. Our dedicated agents have the knowledge and experience to ensure your organization is protected financially by adequate liquor liability coverage. Visit our website or call (813)497-7579 to get started today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.