What is Liquor Liability Insurance?
Suppose you own a business that serves alcohol, either to customers in your establishment or to consume elsewhere. In that case, you need to have liquor liability insurance.
Liquor Liability Insurance is an insurance policy that is extra to your basic liability insurance. It can protect you if someone tries to blame you for their stupidity. That is, if they are intoxicated from alcohol you sold them, either inside your establishment or just in a store, they may try to sue you if they get injured. Or the person whom they injured can sue you for the drunk person’s irresponsibility.
I only own a restaurant. Do I need Liquor liability insurance?
While many states have varying policies, if you own an establishment that serves alcohol, yes, you need to have liquor liability insurance. Even if your restaurant only serves beer and wine, you still need to be protected. You have no way of knowing how much alcohol a patron of your restaurant had consumed before they arrived.
They may have already passed the legal limit without you being aware. These people may also be on medication or other illegal drugs that mix with alcohol and have a diverse effect. Even if you only served them one or two bottles of beer, their intoxication levels may show much higher.
I own a convenience store. Do I need Liquor liability insurance?
If you sell liquor, yes. The same reasons apply. If you have liquor on the premises, you still need to be covered even if it is not consumed there. It’s important to note the liquor liability insurance is not an option for anyone who sells liquor of any kind.
You may only sell coolers, wine, and beer, but if someone comes in to buy alcohol. They are already intoxicated; if they then leave and get into a car crash, destroy property, get into a fight, or cause damage or get injured, they may try to come back to lay blame on you.
You may have also sold alcohol to a minor, as well. This happens, and these laws may vary from state to state, but you do not want to be responsible for the aftermath of that. They may have used a fake ID, which can be hard to spot.
I own a bar. Do I need Liquor liability insurance?
With a bar, lounge, pub, tavern, or any other establishment that serves alcohol inside, you won’t have an option. Most places will not grant you a liquor license with liquor liability insurance.
You don’t want to operate a bar without liquor liability insurance. This covers everything from damages, fights, legal costs, injuries, and everything that happens inside your bar and out. Many policies exclude assault and battery from bar policies; make sure your policy does not have the exclusion.
People don’t take responsibility for their actions, more so when they are drunk. Plus, it can be tough to know if people have been drinking before they get to your bar.
You want your liquor liability insurance to cover everything from damages, injuries, employees, lawsuits, and even mental stress. Even the most experienced bar owner knows they have not seen it all.
People often sneak in their own alcohol and then order a glass of soda. They may be on other types of stimulants that are also hard to detect. If they get hurt or hurt someone else, you need to be covered.
What is the difference between general liability and liquorliability?
You will have general liability insurance as part of your regular insurance package. This is insurance that protects your business against lawsuits. It covers things like:
● Bodily injury
● Property damage
● Advertising injury
Everyone has heard stories about people suing stores for causing them damage because they slipped and fell, burnt themselves on hot coffee, or even damage that happens to your business through no fault of your own.
General liability insurance will help cover medical expenses, court and legal costs, damages against your property, and administrative costs. However, there are areas that your general liability insurance won’t cover.
If you sell or manufacture alcohol of any kind, you must have liquor liability insurance. That won’t be included in your general liability coverage.
Host insurance or host liquor insurance is in place for those other occasions. If you are hosting an event, either at work or on your private property, you should get coverage.
This can be a Friday work event where either the company supplies alcohol or employees can bring it on the premises. This insurance is for any establishment that allows people to consume drinking, but you don’t sell it or make it yourself.
Caterers, AirBnB, work-related events, or private functions can all benefit from having host liability insurance. As discussed before, it will cover any injuries, damages, minors drinking, or anyone considering suing you for something they did after the fact.
You, as a host for an event, can never know what people are doing. People leave to consume drugs and then return; they may have been drinking before they arrived or causing fights, riffs, and causing damage to your property.