Liquor laws vary widely by state, but one universal truth across the country is that all locations selling intoxicating beverages are at risk if the people they serve decide to make poor choices. Liquor liability policies are very specific about what they cover, and our agents can help make sure your policy fully protects your business.
The most important aspect of liquor liability insurance to keep in mind is that it is not included with most business policies. You've invested a lot in running your establishment, and one thing you don't need is a regulatory fine for something you thought had been taken care of. Our agents will make sure that doesn’t happen by creating a policy that meets local regulations and provides enough coverage for the types of incidents you face. These include:
Injuries or damages caused by intoxicated patrons
Lawsuits brought by customers who misinterpreted an employee's actions (especially being escorted out of the establishment)
Litigation costs, including hiring a lawyer and defending against claims brought against your business
Liquor Liability for Weddings and Events
Licensed establishments aren't the only places where liquor might be served. People also tend to drink alcohol at weddings and other major events—sometimes as part of the ceremony, other times as a way of relaxing and having fun afterwards. Whatever your reason for serving alcohol, liquor liability insurance can help keep costs from spiraling out of control if someone gets drunk enough to cause a scene.
T.A. Swain Insurance Group LLC agents are familiar with which local venues require you to have this coverage if you'll be hosting a wedding where alcohol will be served, and our representatives will work with you to ensure that the policy you have meets any other requirements the location has.
Limitations of Liquor Liability Insurance
Most policies apply only to incidents that you were involved with as a part of doing business or hosting an event. They may not cover off-site incidents, non-business activities (such as giving free drinks to friends after closing down your business for the night), and similar incidents. Exclusions may vary by policy, so be sure to read which ones apply to you and consider asking for a policy modification if you expect any of the exclusions to occur on a regular basis.
Your policy may also have an annual cap on how much it will pay out. If your business is particularly risky (for example, bottles are broken on a particularly frequent basis), you may wish to increase your policy limit. Call now for more information—our agents can help you determine the amount of liquor liability insurance that's most appropriate for your business.
1. O'Connor, Cozen. "Comparison of State Liquor Liability Laws." Cozen.com. August 2007. Accessed April 21, 2016. https://www.cozen.com/admin/files/publications/Dram_Shop.pdf.
2. Larino, Jennifer. "Bars Often Roll Dice on Liquor Liability Coverage." Insurance Journal News. April 01, 2013. Accessed April 28, 2016. http://www.insurancejournal.com/news/southcentral/2013/04/01/286632.htm.
3. "Host Liquor Liability." Insurance Glossary. Accessed April 28, 2016. https://www.irmi.com/online/insurance-glossary/terms/h/host-liquor-liability.aspx.