Tis the season for holiday parties. It’s also a time to check in with your insurance agent about liquor liability.
There are two kinds of liquor liability insurance – liquor law liability and host liquor liability. If your business sells, distributes or serves liquor, chances are you’re familiar with the terminology and you know that liquor liability is a separate policy, and not covered by your general liability policy.
If some of this is Greek to you, and definitely before hosting any event where liquor is served, it’s best to chat with your insurance agent. It’s not that we want an invitation … it’s so we can align your exposure you’re your policies.
Liquor law liability insurance protects a business from the threat of lawsuits arising from the sale, distribution or serving of liquor to an “intoxicated” person later involved in an accident. This is a separate form of insurance, covering only those in the business of selling, distributing, manufacturing or serving alcoholic drinks for free or for profit where a license is required. General liability will not cover this.
Host liquor liability insurance protects businesses facing claims of property damage or bodily injury from parties injured by an intoxicated guest. The intoxication must have taken place on the premises. For businesses that are not in the business of selling, serving, manufacturing or distributing alcohol, host liquor is included on your commercial general liability.