Liquor Liability Insurance
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Quick answer: Liquor liability insurance covers claims that your business caused or contributed to injuries or damage by selling or serving alcohol, for example when an intoxicated patron injures someone, including the cost to defend those claims. It is not included in most business policies, so bars, restaurants, stores and event hosts that sell or serve alcohol usually need it as separate coverage.
Liquor Liability Insurance is not included with most business policies, and even though liquor laws vary from state-to-state; there’s one thing that doesn’t vary…the fact that, by selling intoxicating beverages, you are at risk if the people you serve decide to make poor choices. Liquor liability insurance policies are very specific about what they cover, and our agents can help make sure your policy fully protects your business.
You’ve invested a lot in running your establishment, and one thing you don’t need is a regulatory fine for something you thought had been taken care of. Our agents will make sure that doesn’t happen by creating a policy that meets local regulations and provides enough coverage for the types of incidents you face. These include:
- Injuries or damages caused by intoxicated patrons
- Lawsuits brought by customers who misinterpreted an employee’s actions (especially being escorted out of the establishment)
- Litigation costs, including hiring a lawyer and defending against claims brought against your business
Liquor Liability for Weddings and Events
Licensed establishments aren’t the only places where liquor might be served. People also tend to drink alcohol at weddings and other major events. Liquor liability insurance can help keep costs from spiraling out of control if someone gets drunk enough to cause a scene.
Lions & Coventry Insurance Services agents are familiar with which local venues require you to have this coverage if you’ll be hosting a wedding where alcohol will be served, and our representatives will work with you to ensure that the policy you have meets any other requirements the location has.
Limitations of Liquor Liability Insurance
Most policies apply only to incidents that you were involved with as a part of doing business or hosting an event. They may not cover off-site incidents, non-business activities (such as giving free drinks to friends after closing down your business for the night), and similar incidents. Exclusions may vary by policy, so be sure to read which ones apply to you and consider asking for a policy modification if you expect any of the exclusions to occur on a regular basis.
Selling THC-infused drinks? Liquor liability is written for alcoholic beverages and usually does not cover non-alcoholic THC drinks. See THC beverage insurance for liquor stores.
Your policy may also have an annual cap on how much it will pay out. If your business is particularly risky (for example, bottles are broken on a particularly frequent basis), you may wish to increase your policy limit. Contact us today for more information—our agents will help you determine the amount of liquor liability insurance that’s most appropriate for your business.
Talk to a licensed producer: call (916) 967-7715 or request a quote online. Lions & Coventry Insurance Services, Est. 2009, CA Lic. #0G22084.
Liquor liability insurance FAQ
What does liquor liability insurance cover?
It covers claims for injuries or damage caused by intoxicated patrons that are tied to your business selling or serving them alcohol, lawsuits from customers over how staff handled them (for example, being escorted out), and defense costs such as hiring a lawyer, subject to the policy terms and limits.
Doesn’t my general liability policy cover alcohol claims?
Usually not if you are in the business of selling or serving alcohol. Standard general liability forms contain a liquor liability exclusion for those businesses, which is why bars, restaurants and liquor retailers buy liquor liability separately. Businesses that only host an occasional event without selling alcohol may be treated differently, so ask a producer to review your policy.
Does liquor liability cover THC-infused beverages?
Usually not. Liquor liability responds to claims tied to alcoholic beverages, and most THC drinks are non-alcoholic. If you sell them, ask for coverage that names THC beverages in writing. See THC beverage insurance for liquor stores.
Do I need liquor liability insurance for a wedding or event?
Many venues require event hosts to show liquor liability coverage when alcohol will be served. A special event policy can often include it. Check the venue contract for the coverage and limits it requires before you book.
What information do I need for a liquor liability quote?
For a business, have your business type and locations, total annual sales and alcohol sales, hours of operation, whether you offer entertainment or late-night service, server training and security practices, and your prior claims history. For an event, have the date, venue, guest count, whether alcohol is sold or served free, and the venue’s insurance requirements.
What drives the price of liquor liability insurance, and how do I get a quote?
Price depends on your type of business, alcohol sales as a share of total sales, hours, entertainment and security, your location, the limits you need, and your claims history, so we do not publish rates. Call (916) 967-7715 or send your details through our contact page, and a licensed producer will review your business and shop the coverage with carriers that write liquor liability.
Related coverage: Restaurant insurance · Special event insurance · General liability insurance · Retail insurance · Contact us
Brokerage guidance, not legal advice. Coverage depends on the policy form, underwriting and carrier availability.