Do you need Liquor Liability Insurance?
Any business that manufactures, sells, services or assists withe the use or purchase of alcohol, needs liquor liability insurance coverage. There is always an additional risk when serving alcohol whether that is part of your every day business activity or serving it at a special event. Liquor liability insurance protects your company against loss or damages claimed as the result of a patron of your business becoming intoxicated and injuring themselves or others.
What happens when 2 patrons are involved in a fight and one patron sustains injuries and sues the establishment, alleging the negligence service of alcohol caused the fight?
What if a patron is served alcohol at an establishment and while walking home is struck and killed by an automobile. The estate of the deceased patron sues, alleging the negligent service of alcohol directly contributed to the accident.
In order to be protected from these allegations your establishment needs to have Liquor Liability Insurance coverage.
Liquor Liability 101
There has always been a great deal of confusion about the need for liquor liability – even among insurance professionals. Liquor liability laws vary greatly by state, and insurance policy coverage options are often confusing. Here is some basic information on the subject:
- “Dram Shop” Laws: established by the states. Maryland currently does not have any dram shop laws, however that does not mean that you cannot be sued. If you do not have liquor liability insurance, then there is no coverage to pay for the defense costs for the lawsuit. Dram Shop Laws hold alcoholic beverage servers financially liable for harm that visibly intoxicated individuals cause to other people, themselves, or property. In addition to bars, liquor stores and restaurants, they can also be applied to social clubs and private events where liquor is served. Dram shop laws also include selling liquor without a license, selling liquor after hours, and selling liquor to minors.
- Liquor Legal Liability: This exposure is not covered by your general liability insurance coverage. Liquor liability insurance provides coverage for bodily injury or property damage for which you may become legally liable as the result of contributing to a person’s intoxication. This coverage is provided by a separate policy or an endorsement to the general liability policy and will only cover establishments ‘in the business of’ manufacturing, selling, distributing, or serving alcoholic beverages for a charge.
- Host Liquor Liability Insurance Policies: cover special events for businesses that elect to serve alcohol to their employees, prospects, and customers. This type of liability insurance is also needed by people and businesses serving or providing alcoholic beverages to customers, guests, or employees. In order for host liquor liability insurance coverage to apply you must not be in the business of serving, selling or facilitating alcohol. The coverage is usually included in most general liability policies.
How can Huff Insurance help?
Nevertheless, liquor liability insurance continues to be a quiet – if not dwindling – market around the country. In fact, more than half the establishments in the United States choose to operate without liquor liability insurance coverage. Many times you can purchase assault and battery coverage on your liquor liability policy. Assault and battery is usually excluded on your general liability policy.
Huff Insurance makes your liquor liability insurance process as simple as possible. By filling out a simple online form, our professional Trusted Choice ®insurance agents will shop the market for you and get the best possible coverage and competitive premiums. We pride ourselves on taking care of our clients and their interests and providing the right coverage at the right price!
Huff Insurance has been Protecting Lifestyles ™ of business owners in Pasadena, MD since 1960.
Get your quote today!
What are you waiting for? Simply complete the Protection Savings Form above for a free, no-obligation liquor liability insurance quote. The sooner we receive your information, the sooner we will get you the best protection for your alcohol-serving situation. So don’t delay another minute – complete the form now.
Liquor Liability could be the policy you need to fill a gap in your current business insurance coverage. Call us today.