Does My Business Need Liquor Liability Insurance?

Most Commercial General Liability policies provide "host liquor responsibility." If you provide alcohol at a social gathering where the guests aren't paying, that typically covers you. At least that is the intent of the policy wording. For example, an open house or a special function with refreshments. Granted, you may still be held liable for the consequences of the alcohol you supply. However, you may not require additional coverage.
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If you are a business that manufactures, serves, sells, or distributes alcohol, there is an exclusion for this coverage in your Commercial General Liability policy, so you need Liquor Liability Insurance. Alcohol creates real and significant exposures for restaurants, bars, taverns, and hotels. These operations develop a large percent of revenue from sales of alcohol products, which increase the odds of a claim.

Liquor Liability provides insurance for bodily injury or property damage for which you may become legally liable due to contributing to a person's intoxication. Liquor Liability Insurance is usually provided under a separate policy and is intended to cover firms that are in the business of manufacturing, selling, distributing, or serving alcohol.

Who Should Consider Liquor Liability Insurance?
If you are in any of the following businesses, we recommend Liquor Liability Insurance:

• Restaurants
• Bars & Taverns
• Night clubs
• Special Events
• Casinos
• Sports Facilities & Complexes
• Catering Companies
• Liquor Stores
• Wineries
• Fraternal Organizations
• Distributors & Manufacturers
• Convenience Stores

 
We can look at policy options for you and get the best possible coverage and competitive premiums. Let us know if you have any questions about this or have any other Business Insurance questions. 

Additional Resources:
What is Liquor Liability?

Jason Matison
Commercial Insurance Agent
Austin, Texas