Liquor Liability Insurance
Liquor liability insurance is a business insurance that protects your business against loss or damages claimed as a result of a patron of your business becoming intoxicated and injuring themselves or others. If your business manufactures, sells, serves, or facilitates the uses or purchase of alcohol, then your business may need this coverage.
Currently, liability laws vary by state. Some states hold a bar owner and bartender responsible for the harm caused by serving a drink to an inebriated person. Liability is often part of a DUI case and could be assigned to restaurants, liquor stores, clubs and private events like home parties. That party could be liable if the intoxicated person commits a crime. Liability laws also apply to selling liquor without a license, selling it to minors and selling it after hours.
Liquor liability coverage may be sold as an add-on to a commercial liability policy or as a separate liability policy. But, if you do not purchase this extra coverage your standard liability policy DOES NOT protect your business against these kinds of claims.