Liquor Liability

Liquor liability Insurance is a type of insurance policy which covers legal claims made against businesses that relate to liquor. If you operate any kind of business involved in the sales or distribution of alcoholic you need a Commercial Liquor Liability policy. Liquor Legal liability insurance helps pay for damages awarded to a claimant on a law suit imposed upon you, it also helps pay for the legal fees; of defending you when a claim is made against your establishment. Most commonly, such claims involve damages as a result of the actions of an intoxicated person, such as a lawsuit filed by someone involved in a crash caused by someone who got drunk in your business. Financial awards in such suits can be substantial, businesses often lack adequate liquor liability coverage to deal with this scenario, and this leaves them exposed to very high risks. In many cases, poor hiring practices employed by store and restaurant owners create situations that prompt legal action by the consumer. Examples include employees providing liquor to underage clients, improperly trained staff, and owners and managers who provide liquor to individuals who may prove dangerous to themselves and other persons as a result of their intoxication level.

Liquor Liability Insurance applies to the following businesses:

  • Manufacturing, selling, or distributing alcoholic beverages.
  • Serving or furnishing alcoholic beverages for a charge, whether or not such activity requires a license or is for the purpose of financial gain or livelihood.
  • Serving or furnishing alcoholic beverages without a charge, if a license is required for such activity.

While many people may think that liquor liability Insurance does not apply to them unless they own a business such as a liquor store, tavern, bar, or restaurant, there are circumstances in which people outside the alcohol business need liquor liability coverage. For example, a wedding reception at which alcohol is served could create a situation in which the host would be liable for the actions of someone who become drunk. Some venues have liability policies which cover private events, and in other cases, it’s necessary to purchase what is known as a host liquor insurance policy, a type of policy tailored to someone who is not in the business of alcohol sales, production, or service, but who needs liability coverage for an event.


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