What is Liquor Liability Insurance? If you are in the business of selling or serving alcoholic beverages you can and will be held liable for damages or injuries caused by persons who have become intoxicated as a direct result of your operations. While you are naturally inclined to think of these damages as a result of a drunk driving accident once your patron leaves your place of business the most common claims are assault and battery or vandalism to neighboring property.
You do not have to be in the business of selling or serving alcoholic beverages to have an exposure. You can be found liable under the Host Liquor liability stature of almost any state. A good example of this would be the employer who has a holiday party and alcoholic beverages are severed and employees become intoxicated and that intoxication leads to fights.
Once referred to a dram ship insurance or liquor legal liability the liquor liability insurance policy pays for the damages that are imposed on you by the law as well as providing a defense for you when a claim is brought against you. You do not have to be a night club or bar owner to be exposed to this type of loss. Manufacturers and distributors can also have liability. Event planners and caterers can be exposed to this claims of this nature.
Some insurance companies will offer a discount on the premium to establishments that provide alcoholic training to their employees.
A standard general liability policy will exclude liquor liability. It will however include host liquor liability. If you are in the business of selling or serving alcoholic beverages you might be able to add liquor liability insurance coverage to your general liability policy in the form of an endorsement rather than purchase a separate policy. The premium you pay will be based on the type of alcoholic beverage you sell or serve. It is just beer and wine or is it what is referred to as “hard liquor”?
Your annual sales will be required to establish a rate. Note that these policies are subject to audit meaning that at the end of the policy term you will be asked what your actual sales were. If your sales were higher than you anticipated at the time you purchased the policy you will be charged an additional premium. Also note that a minimum premium may apply which means that is the minimum fully eared premium the insurer will charge for your liquor liability insurance coverage.
A liquor liability policy maintains a limit per occurrence of $1,000,000. There is also an aggregate limit which is the most the insurance company will pay for claims of bodily injury and/or property damage in a policy term. That limit is $2,000,000. A deductible per claim may or may not apply.
Some insurance companies will offer a discount on the premium to establishments that provide alcohol training to their employees.
You can relieve some of your anxiety by purchasing the right liquor liability insurance at EZ Center Insurance Service; our underwriting guidelines are strict but our pricing is fantastic.