Liquor Liability Insurance

Liquor liability insurance is a type of insurance that covers a business for damages or injuries that occur because of serving or selling alcohol. This type of insurance is important for businesses that serve or sell alcohol because they can be held legally responsible for any injuries or damages that are caused by their patrons after consuming alcohol on the premises.

Some of the benefits of liquor liability insurance include:

• Protection against financial loss: If a patron of your business becomes injured or causes damage as a result of consuming alcohol, you could be held financially responsible. Liquor liability insurance can help protect your business against these types of financial losses.
• Defense against lawsuits: If a patron of your business sues you for damages or injuries that occurred because of consuming alcohol on your premises, your liquor liability insurance can help cover the cost of defending against the lawsuit.

Businesses that should consider purchasing liquor liability insurance include:

• Bars and restaurants: These types of businesses are obvious candidates for liquor liability insurance, as they serve and sell alcohol to patrons on the premises.
• Event venues: If you operate a venue that hosts events where alcohol is served or sold, such as a wedding venue or a concert venue, you should consider purchasing liquor liability insurance.
• Hotels and resorts: If you operate a hotel or resort that serves or sells alcohol to guests, you should consider purchasing liquor liability insurance to protect your business against potential financial losses or lawsuits.
• Retail stores: If you operate a retail store that sells alcohol, such as a liquor store or a grocery store, you should consider purchasing liquor liability insurance to protect your business.

The amount of coverage provided by liquor liability insurance can vary depending on the limits of the policy and the laws of the state in which the business operates. In some states, there are limits on the amount of coverage that can be provided by liquor liability insurance policies. It is important to check with your insurance provider to understand the limits of your coverage and to ensure that your policy meets the requirements of your state's laws.

In the State of Illinois, for example, any business that sells liquor must have liquor liability. This includes catering companies, event venues, hotels, liquor stores, trade shows that offer liquor samples, private clubs, and more.

Examples of liquor liability claims:

A patron of a bar becomes heavily intoxicated and gets into a car accident after leaving the bar. The patron and any other parties involved in the accident sue the bar for damages, alleging that the bar overserved the patron and should have known that the patron was too intoxicated to drive.

A patron of a restaurant becomes intoxicated and gets into a physical altercation with another patron. The injured patron sues the restaurant for damages, alleging that the restaurant overserved the patron and should have known that the patron was becoming too intoxicated.

A patron of a hotel becomes intoxicated and falls down the stairs, suffering serious injuries. The patron sues the hotel for damages, alleging that the hotel overserved the patron and should have known that the patron was becoming too intoxicated.

A patron of a concert venue becomes intoxicated and gets into a physical altercation with security staff. The patron sues the concert venue for damages, alleging that the venue overserved the patron and should have known that the patron was becoming too intoxicated.

A patron of a retail store becomes intoxicated and gets into a car accident after leaving the store. The patron and any other parties involved in the accident sue the retail store for damages, alleging that the store sold alcohol to the patron knowing that the patron was already intoxicated.

There are situations outside of the selling of alcohol where liquor liability can come in to play. Businesses that do not sell alcohol, but host holiday parties at their location could find themselves facing liquor liability if a party goer gets into an accident on the way home. The same goes for parties or any situation you serve alcohol at your home. The exposure lies on personal homeowners that entertain with alcohol involved just as much as it does a bar or tavern.

Claims Prevention

Liquor liability claims can happen any time liquor is involved. Having a properly trained staff is an important part of liquor liability prevention. Many Safe Serve and training certification programs exist.

If your business serves alcohol having a “Drive Home” service in place to prevent drunk driving claims is also a great idea. The basic principle of this program is if a patron is potentially over served (which can happen regardless of training) there is a plan in place to get them home safely.

If your business does not serve or sell alcohol as part of your regular service, the best prevention against a liquor liability claim is to avoid it all together by never serving or giving alcohol away.

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