In Simple Terms - What is Liquor Liability Insurance?

In Simple Terms - What is Liquor Liability Insurance?

October 19, 2023

If your California business sells or serves alcoholic beverages, Liquor Liability Insurance is a necessary insurance coverage to protect you from loss.

Say you own Scotty's Bar - a local Elk Grove tavern, and your employee lets a customer tip one too many beers. At the end of the evening they get into their vehicle, and broadside a young couple enjoying an evening out. Your business will likely be sued, and Liquor Liability is the insurance that will defend you in court. It will also pay for the injuries and property damage caused by this customers poor choice.

Frequently Liquor Liability to your business insurance policy. It can also be purchased as a standalone policy. The cost is usually based on the annual revenue derived from alcohol - rate established on your policy per thousand dollars of annual liquor sales.

Important - to obtain Liquor Liability Insurance at the best cost, it's important that your employees are trained in how to respond to intoxicated patrons, how to govern how much to serve, and when and how to cut them off.

Who should purchase Liquor Liability? If your business is a bar or tavern, a restaurant, a caterer or a nightclub, a winery, brewery, distillery, you will still want to protect your business with Liquor Liability Insurance.

Businesses and individuals frequently host special events where liquor is served, but not sold. In this case, and insurance coverage called Host Liquor Liability will come into play. Host Liquor Liability is a is typically included in the standard General Liability Insurance policy at no additional charge.

We're insurance121. Call us at 916-236-3351 for insurance for your bar, restaurant, brewery or winery. We also offer Event Insurance - contact us.