Liquor Liability Insurance
“A guy walks into a bar”
Many entertaining stories begin this way, but for business owners who engage in the sale or service of alcohol, the story can turn into a nightmare without adequate liquor liability insurance.
What happens when an intoxicated person walks into your restaurant, orders one drink, and commits vehicular manslaughter on his drive home? Your staff may not have over served the patron, but the victim’s family sues you for civil and criminal damages. The financial ruin from that one drink could have been prevented if you carried liquor liability insurance.
Who needs liquor liability insurance?
Any business that sells, serves, manufacturers, or provides alcohol needs liquor liability coverage. While bars, nightclubs, and restaurants are the obvious clients for coverage, craft breweries, caterers, hotels, country clubs and any venue which permits guests to consume alcohol, whether purchased or not, is liable for alcohol-related claims.
Businesses that host events, such as wedding receptions or festivals, are also vulnerable to alcohol-related claims. Consider what would happen when a caterer serves alcohol at an open bar event and two intoxicated guests start a fist fight. Even though the guests did not pay for the drinks, the catering company can be held liable for damages resulting from serving alcohol.
What is covered by liquor liability insurance?
Damages resulting from the actions of intoxicated patrons are often not covered under most standard liability policies. That’s why a separate liquor liability policy is crucial for business owners engaged in the sale, service, and manufacture of liquor.
Liquor liability policies can provide coverage for many instances unique to alcohol-related claims:
- Assault and battery
- Mental damages
- Property damage
- Court defense costs
- Sexual assault
- Medical expenses
- Employees as patrons
Isn’t liquor liability insurance expensive?
Even with highly trained and experienced severs working under the watchful eye of diligent supervisors, accidents happen. It only takes one intoxicated patron to make one bad decision to bring about costly damages. If you choose to save a few dollars today by forgoing liquor liability coverage, lawsuits resulting from the actions of one intoxicated patron could bankrupt you!
Liquor Liability Coverage Details
Monoline Liquor Liability for establishments that sell or serve alcoholic beverages, offering protection for covered claims of negligent sale or service.
- Liquor Liability – limits up to $1MM/$2MM
- No sublimit on Assault & Battery ($100,000/$300,000 sublimit on adult clubs only)
- No cap on alcohol sales
- Defense cost outside the limit
- Risks with security and major entertainment acceptable
- Liquor License Holder included as Additional Insured automatically
- Coverage available for both licensed and unlicensed operations
Contact us JDA Insurance Group for more information on how to protect your business from this exposure.