Liquor Liability Insurance
Protecting Your Business from the Unexpected
About Liquor Liability Insurance
Serving alcohol? Whether you’re running a bustling bar in Brooklyn or hosting a corporate event in Manhattan, liquor liability insurance is essential. It safeguards your business from potential claims arising from alcohol-related incidents.
What Is Liquor Liability Insurance?
Liquor liability insurance, often referred to as “dram shop insurance,” provides coverage for businesses that manufacture, sell, or serve alcoholic beverages. It protects against claims of bodily injury or property damage caused by intoxicated patrons. This coverage is crucial, as general liability policies typically exclude alcohol-related incidents.Â
Who Needs Liquor Liability Insurance?
If your business is involved in any of the following, liquor liability insurance is a must:
•Bars and taverns
•Restaurants and cafes
•Caterers and event planners
•Liquor stores and breweries
•Wineries and distilleries
•Grocery stores selling alcoholÂ
Even if alcohol isn’t your primary product, serving it at events or on-premises exposes you to potential risks.
Understanding Dram Shop Laws
Many states have “dram shop” laws that hold businesses accountable if they serve alcohol to visibly intoxicated individuals who then cause harm. These laws can lead to significant legal and financial consequences for businesses found liable.
What Does Liquor Liability Insurance Cover?
Bodily Injury
Covers medical expenses if an intoxicated patron injures themselves or others.
Property Damage
Pays for damages caused by intoxicated customers.
Legal Fees
Handles defense costs, settlements, and judgments related to covered incidents.
Assault and Battery
Provides coverage for fights or altercations involving intoxicated patrons.
Host Liquor Liability vs. Liquor Liability Insurance
- Host Liquor Liability: Included in general liability policies; covers businesses that don’t sell alcohol but may serve it occasionally (e.g., office parties).
- Liquor Liability Insurance: A separate policy for businesses that sell, serve, or distribute alcohol regularly.Â
Factors Influencing Insurance Costs
- Type of establishment and its size
- Location and local laws
- Annual alcohol sales revenue
- Claims history
- Staff training and certifications Â
Get a Quote Today
Protect your business from unforeseen liabilities. Our experienced agents are ready to help you find the right liquor liability insurance tailored to your needs.Â
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