Benefits of Liquor Liability Insurance Coverage

Liquor liability insurance is designed to protect businesses that sell or serve alcoholic beverages. Specifically, this type of insurance covers damages that result from things like fights, careless behavior or automobile accidents caused by individuals who have consumed alcohol. Liquor liability insurance is important, as it protects you should your clients or patrons sue your business for damages related to their intoxication—something a general liability policy often won’t cover.

Liquor liability insurance provides the following:

  • Coverage for medical expenses. In the event that an employee requires medical attention for a work-related illness or injury, workers’ compensation insurance can cover the accompanying treatment costs. This includes expenses related to hospital visits, medical procedures and prescriptions
  • A method for businesses to meet legal requirements. Depending on the nature of your business and its location, you may be legally required to carry liquor liability insurance. Because the strictness of legal requirements differ from location to location, where your business operates can have a major impact on how your liquor liability insurance is priced. Be sure to speak with an insurance professional to secure the right level of coverage.

  • Protection against unruly customers. Alcohol can alter an individual’s state of mind and make your client’s behavior unpredictable. This can lead to fights or other potentially dangerous situations. Liquor liability insurance is designed to protect businesses from these situations and is a must for establishments that serve or sell alcohol. It should be noted that assault and battery coverage can often be extended to include specific incidents, such as sexual assault, stabbings and shootings.

  • Legal fees and court cost reimbursement. In the event that a liquor-related claim arises, legal fees and court costs can add up quickly. Without the right liquor liability policy, your business could have to cover defense costs itself, which can be a huge financial burden for even the most profitable establishments.

  • Coverage for employees. Even if you require your employees to serve liquor responsibly, there’s a chance that they may disregard your instructions. Liquor liability policies can cover your employees’ improper actions and better protect your business from liquor-related incidents. What’s more, certain insurers provide training and risk management strategies to policyholders to help educate businesses and employees as well as lower overall liquor liability exposures.

The information included in this website was collected from sources that are considered reliable including, without limitation, rate information provided by carriers, coverage descriptions from carriers and marketing materials from various sources. This information is provided for educational purposes only. We have not verified nor can we guarantee the accuracy, timeliness or completeness of such information. This website is provided on an "AS-IS" basis. Thus, it is solely your responsibility to verify any information you obtain from this Website before making decisions or incurring costs based on such information. This information is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice or policy coverage. Readers should contact legal counsel or an insurance professional for appropriate advice. Please refer to your policy or talk with your broker for specific coverages and exclusions that are applicable to your situation.