Since confusion abounds among restaurant and bar owners regarding the need or requirement of liquor insurance, hopefully clarity will reign here.
Liquor liability laws do vary from state to state so that is part of what is causing the confusion. There are different types of coverage and what and how it covers varies as well. To start with, commercial general liability insurance typically covers incidents that don’t involve liquor. This means those establishments that do serve liquor need to purchase additional coverage as well.
Liquor liability does, though, apply to the business that sells alcoholic beverages, such as wine, beer and other liquor. Even a restaurant that offers alcoholic beverages to the patrons is required to carry liquor liability insurance coverage. Even with this coverage, patrons still find a way to sue an establishment.
Commercial Liquor Liability Policy
Anyone who has a business that is involved in any level or any amount of alcoholic sales is required to have a commercial liquor liability policy. This type of policy protects the establishment owner from third-party law suits when someone is injured on the property or if the third party’s property is damaged.
The policy will cover the court costs and the costs of hiring a defense attorney for the lawsuit environment. Also covered in the legal end are costs that might be involved in bail bonds and interest that may accrue on a judgment against the establishment owner.
There are policy limits, of course. To have an additional coverage limit, the establishment owner can invest in an umbrella insurance policy.
Host liquor coverage is an additional part of liquor insurance. It provides coverage and protection to the establishment owner against property damage that is caused by another patron or a guest who is injured by another patron or guest who is intoxicated. This coverage is included under the commercial general liability policy for all businesses that manufacture, distribute, sell or serve alcoholic beverages of all kinds.
Liquor Legal Liability
Liquor insurance also includes liquor legal liability, which provides property damage coverage and bodily injury coverage in the case a seller of alcoholic beverages is legally liable because he is a contributor to an individual’s intoxication. This is a separate policy and only covers those who may be in the line of selling, serving, manufacturing or distributing of liquor.
If you are interested in liquor insurance, visit RSI-Insurance.com for answers to all your questions.