Liquor Liability Insurance - Everything You Need to Know

Do you own an establishment which produces, distributes, sells, serves, or furnishes alcoholic beverages? If your answer to this query is yes, you need to consider how liquor liability insurance will affect your business. Take a little glance below to discover everything you need to know about this coverage!

What is liquor liability insurance?

Firstly, it might be worth discussing what liquor liability insurance actually is. This type of insurance serves to protect companies that sell, serve, or distribute alcoholic beverages, helping cover claims concerning property damage or bodily injury that an intoxicated consumer causes after a business gives them alcohol. Thus, this coverage usually protects companies when they overserve a consumer.

Commercial general liability policy

Commercial general liability policy does generally cover host liquor liability. However, this only covers host liquor liability for businesses which are not in the industry of producing, distributing, selling, serving, or furnishing alcohol. So, you need to consider this and invest in the appropriate insurance for you.

Why would companies be liable for their consumers’ actions?

While particular wording of laws can vary, dram shop statutes hold establishments that overserve liquor liable to any individual injured by the intoxicated person. Because of these rules, any company that furnishes, serves, or sells alcoholic beverages could possibly be responsible for its patrons’ actions – even after the individual has left the establishment.

How can you purchase this insurance?

There are various ways to buy this type of coverage. Since there are multiple options, knowing how your options differ and which is the best route to take can sometimes be challenging. Let’s discuss the two most popular coverage choices you will likely come across when getting a quote.

Monoline liquor liability coverage

Also known as stand-alone liquor liability coverage, this is the only insurance you buy from that particular carrier. This means you are taking the monoline route if your liquor liability coverage gets quoted with an insurance company which is not your general liability insurance company.

General liability & liquor liability combination policy

In contrast to monoline coverage, this combo of general and liquor liability enables individuals to complete only a single audit for both coverages rather than doing it twice. The prices for this type of cover are usually more competitive than monoline coverage. Furthermore, the great thing about this package is that liquor and general liability operate better when on the same policy with the very same insurance company – this results in less coverage overlap and enhanced compatibility. Despite this, buyers should be aware that this type of policy is less customizable and often has stricter guidelines to qualify compared to monoline alternatives.

Final thoughts

So, there you have it. Hopefully, you now know what you need about liquor liability insurance to help protect your business today. Facing an unwanted claim because of an accident generated by your liquor sales is a substantial risk that any business needs to consider – including yours.