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

Every referral that we have given John at JDA Insurance has called us back to thank us for that referral and to say how much money they had saved! It’s great to know when you send someone out into the woods with a referral they come back a happy camper! Thanks John! -Lisa H, C.F.P.

JDA Insurance saved my condo association over $7,000 on our insurance policy during the first 2 years alone. John and his staff shopped the policy each year for the best options for us. They presented the information timely, prior to our policy expiring, reviewed the policy with us and we even had a possible claim question and they handled that for us. JDA Insurance is customer service at its finest! Thank You JDA!!! – Ann I.