Liquor Liability Insurance Overview
Any business that involves the manufacture, sale or purchase of liquor faces unique liabilities. When alcohol is used in business, the potential exists for an employee or a patron to be drunk and cause injuries or property damage. It may seem that the drunk person should be the one held responsible, but the business that served the alcohol could be held liable as well.
What Liquor Liability Insurance Covers
A liquor liability policy is intended to provide financial coverage for your business against covered claims of losses, damages or injuries brought against the business that a patron of your business caused due to intoxication.
Liquor liability policies can include the following coverages:
- Assault and battery coverage – This can be its own policy or an add on to your liquor liability policy. It can include assault and battery of patrons, by patrons, and can also benefit businesses who hire security, in the case that a claim is brought against security personnel.
- Defense Costs – In most types, the biggest cost from a claim is your attorney. This portion of the policy can cover the cost of your legal defense, whether or not the claim is found to be valid.
- Employee Inclusion – If employees are drinking on the job, regardless of rules, it is important to cover them in your policy.
- Damage Includes ‘Mental Damages’ – If a patron claims they suffered in non-physical ways, like stress, it is important to include this in your coverage plan.
Considerations for Liquor Liability Insurance Coverage
For any business that manufacturers, distributes, sells or serves alcoholic beverages, personal and commercial general liability policies specifically exclude liquor liability.
Most states require any establishment that sells liquor to also carry liquor liability insurance, so it is important to understand the local laws and regulations regarding your business.
Most policies exclude illegal sales, like selling to a minor.
In some cases, your business may face lawsuits regarding claims that are found to be invalid. In these cases, your liquor liability insurance can cover the costs associated with the lawsuit, including legal counsel, so that your business does not have to.
How to Get Started
Properly insuring every business is critical to preventing financial ruin in the case of an damages, injuries, or a false claim. Every business is unique, and requires insurance policies tailored its needs. The insurance professionals at Fusco & Orsini can help you find a liquor liability policy that fits your needs. Request a free quote.