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Who needs Liquor Liability Insurance?
Some businesses need annual policies for Liquor Liability and some just need the coverage for an individual event. When you own a business and sell or serve alcohol for free or fee you will have an element of risk that needs protection. This specialty insurance provides protection for you when a patron of your business or a guest or employee at your event claim damages or injury as a result of becoming intoxicated at your event or business.
If you manufacture, sell, serve, or facilitates the use or purchase of alcohol (send a gift to a client), then you need liquor liability insurance coverage.
Liquor Liability 101
Who hasn’t been confused about the need for Liquor Liability insurance, even as an agent it can be confusing? Liquor laws vary greatly from state to state, and the insurance policy language and policy options are oftentimes confusing as well. To better understand Ohio Liquor Liability laws CLICK HERE.
The basics are separated into three parts: Liquor Legal Liability, Dram Shop Laws and Howt Liquor Liability.
- Liquor Legal Liability
- This coverage is provided by a separate policy and will only cover establishments ‘in the business of’ manufacturing, selling, distributing, or serving alcoholic beverages for a charge. It provides coverage for bodily injury or property damage that you become legally liable for – as the result of contributing to a person’s intoxication. This exposure is not covered under a general liability policy.
- “Dram Shop” Laws
- They apply not only to bars, liquor stores and restaurants, but also to social clubs and private events where liquor is served. Dram Shop Laws hold alcoholic beverage servers financially liable for harm that visibly intoxicated individuals cause to other people, themselves, or property. These laws are established at the state level, and also include selling liquor without a license, selling liquor after hours, and selling liquor to minors.
- Host Liquor Liability Insurance Policies
- This type of liability insurance is also needed by people and businesses serving or providing alcoholic beverages to customers, guests, or employees. It will cover special events for businesses that elect to serve alcohol to their employees, prospects, and customers.
Who will be held responsible?
The Business, business owner, board of directors, homeowner and some employees depending on the Court decisions. This coupled with new state laws may even hold vendors and manufacturers of the alcohol responsible.
As unfair as it seems with the Dram Shop laws you may be held strictly liable if you serve or continue to serve an intoxicated patron or guest.
Ooops did you think of having an event policy for liquor liability at your wedding? If not the bride and groom might be held responsible for any injuries/death or damage because of the intoxicated wedding guest having an auto accident when leaving the party.
Think about these… What if..
…A patron leaves your bar or store, gets into his car, drives, and commits vehicular manslaughter, the victim’s family could sue the bar for both civil and criminal damages if the patron was shown to have been intoxicated from drinking in your establishment.
…A restaurant serves alcohol at a catered event, where two guests have a fight, and one incurs serious injuries at the hand of a drunken person. Who is responsible? The restaurant, the servers, the event planner, the event holder.
It’s vital that if your establishment serves alcohol, you protect yourself from potential financial losses by being covered with a liquor liability policy. In these two examples even if your establishment is not held responsible by the court you still have exorbitant legal fees that would need paid.
What does liquor liability insurance cover?
A good deal of alcohol-related liability claims filed against bars, taverns, and restaurants are a result of liquor-induced fights or altercations. In fact, just escorting an unruly patron to the exit is frequently enough to trigger an assault and battery allegation. Along with coverage for these events, litigation costs, including the fees to retain an attorney and court costs may also be covered under a liquor liability policy. It will also cover damages claimed or awarded up to the policy limit.
Worried about the cost?
We specialize in covering local businesses like yours. We have everything you need whether it be monthly payment plans, employee coverage, claims assistance or fast and simple coverage almost immediately. The cost you don’t want is the one that closes your business for good.
Why We’re Different
You may think you want the cheapest insurance you can find, but realize you may not be getting everything you bargained for…
While most insurance products are similar in price and function, insurance providers are very different when it comes to structuring a policy that actually covers you.
There’s no such thing as a one-size-fits-all insurance policy when it comes to your business.
We’re your neighbors. We protect businesses and people we know and care about, and that means we always look for ways to protect you better, including carefully choosing the insurance companies we represent to be both affordable and responsive.
Contact us and let the professionals at our company help you forge the strongest shield possible to help you protect the things you are working hard to build.