Liquor liability insurance is insurance coverage that protects a business that sells alcoholic beverages against loss or damages resulting from a customer’s intoxication. These claims can stem from property damage or injuries to the customer or others stemming from the customer’s behavior while intoxicated. Insurance experts often recommend that bars, pubs, nightclubs and restaurants that serve alcohol carry liquor liability coverage, as most standard business protection policies do not provide coverage for alcohol-related damage or injuries.Liquor liability insurance coverage is especially vital if the business is located in a state that holds the business liable for the actions of intoxicated patrons. For instance, if a customer is overserved at an establishment, then later drives while intoxicated and is involved in a fatal accident, the state can hold the establishment liable for overserving the customer and facilitating his intoxication. In these states, the establishment faces a high degree of liability and may face both serious criminal charges and costly civil lawsuits.
A liquor liability insurance policy offers coverage with varying terms. Businesses can purchase these policies as stand-alone coverage or as a rider on a general liability policy. The business must make sure that liquor liability insurance coverage rider is included in the general liability policy or that it has sufficient liquor liability coverage, as such coverage does not come as a standard part of the general liability protection. The policy holder must also examine the liquor liability coverage for any exceptions, such as accidents that occur away from the company’s premises, which may leave the establishment open to other alcohol-related claims.
Some facets of the liquor liability insurance policy include coverage for intoxicated employees, protection from assault and battery cases that occur on the premises and legal defense costs. Leading insurers also offer free or low-cost employee training that can reduce the establishment’s premiums by as much as 20 percent.