Liquor liability insurance is coverage that will protect your business against loss or damages claimed as a result of a patron of your business becoming intoxicated and injuring themselves or others. Any business that manufactures, sells, serves or facilitates the use or purchase of alcohol should include this coverage as part of their business insurance plan. Liquor liability may be sold as an add-on to a commercial general liability policy or can be sold as a separate liquor liability policy. A commercial general liability policy must be in place before or at the time liquor liability coverage is written. Here are a few things you want to make sure are included in a liquor liability policy.
*Assault and Battery Coverage – Most claims against bars and restaurants are the results of fights. A liquor liability policy should include coverage for assault and battery claims.
*Employees Included – If you serve alcohol, then employees may drink regardless of the rules. Make sure employees are covered as patrons.
*Defense Costs Included – The biggest cost facing a business in these types of claims is the cost of retaining an attorney. Make sure the defense cost is outside the liquor liability policy limit.
As a final note be aware that liquor liability insurance will not cover sales that are contrary to law or liquor sales to minors. Remember to Serve Safely and Protect Your Business.
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