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Liquor Liability Questions and Answers

A Business and Risk Update

A traditional liquor liability policy, like all commercial insurance policies, has limitation and coverage terms and conditions.  We thought it might be good to provide a brief overview of this coverage by answering some common questions.  Remember, we can provide a review of your business insurance needs.  Please call our agency to set up a meeting.

 

Common Questions Regarding Liquor Liability

 

 “My business (a manufacturer) is not in the business of selling alcohol.  However, we do offer alcohol at parties or events at no cost.  Do I need liquor liability insurance?”

 

Answer: In most cases, you do not need to purchase liquor liability if you are not in the business of selling or serving alcohol.  However, it is always a good idea to have us review your individual commercial insurance coverage to make that determination.

 

“Our nonprofit is holding a fundraiser where we are selling wine to raise money.  Do I need liquor liability insurance?”

 

Answer:  Yes, if you are selling alcohol, you will need liquor liability insurance, or hire a bartender who has it.  The standard liquor liability exclusion in your commercial insurance applies to any business that is in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages.

 

If your business is holding an event at a hotel or other venue where alcohol is served, we recommend you request confirmation that they have liquor liability insurance.

 

In many states, every bar or business in which an intoxicated person drank can be pulled into a lawsuit if the person causes bodily injury to a third party.  The business must prove that the patron was not intoxicated while at their event.

 

All liquor liability insurance policies exclude the selling of alcohol illegally, which includes selling liquor to a minor.


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