The Basics of Liquor Liability Insurance

Liquor Liability Insurance

Before selling a single drink, a business must obtain the necessary legal licensure to serve alcohol. While this helps reduce the liabilities that accompany adult beverage sales, it cannot eliminate risks entirely. Including liquor liability insurance in the risk-mitigation plan, however, can help businesses cope with and recover from the unfortunate inevitability of alcohol-related damages.

What It Is

Although liquor liability insurance is required by some states, others simply recommend it as a means of compensating for the inherently risky business of selling alcohol. It covers the medical fees, legal expenses, and other costs that a business faces following an accident caused by an over-served patron, regardless of where that accident takes place.

Who It Covers

All businesses that sell beer, wine, liquor, or any other kind of alcohol can benefit from liquor liability coverage, including:

  • Restaurants
  • Bars and clubs
  • Breweries, wineries, and distilleries
  • Markets and grocery stores

Why It’s Necessary

A business is responsible for the decisions its patrons make while under the influence of alcohol, and those decisions can be destructive or, tragically, even deadly. If a patron damages third-party property, assaults someone on or off premises, or causes injury or death due to drunk-driving, the business that served the offender is likely to find themselves on the other side of a hefty lawsuit.

Liquor liability insurance is one of the easiest ways to ensure that a business remains protected from the inherent legal troubles that coincide with serving alcohol. Customized, comprehensive policies — in conjunction with preventive measures and careful training — keep some of society’s finest social establishments running without a hitch.