Liquor Liability – For Any Business That Serves, Sells, Distributes or Manufactures Liquor
Serving Denver, Golden, Lakewood, Littleton, Wheat Ridge, Boulder, Westminster
Serving or selling liquor to customers is risky business. No matter how careful you are and how well-trained your staff is, you always run the risk of accidentally selling alcohol to a minor or being sued when a customer who purchased alcohol from your business drives while intoxicated or causes bodily injury or property damage to another while under the influence of alcohol your business provided. The injured party can come after the business and sue for damages.
What Does Liquor Liability Insurance Cover?
This liability insurance pays for attorney fees to defend yourself and your staff during a lawsuit, but it can also pay some or all of the claims (depending on policy limits and deductibles) if your establishment is held responsible for the drunken patrons’ actions that harm others.
While liquor liability insurance will not cover cases of ‘willful neglect.’ This is why it’s so important to properly train and monitor staff in the distribution of alcohol to patrons.
This policy will cover events that occur when your patrons ‘leave’ your establishment, but can also cover events, including assaults and batteries, that occur ‘within’ your bar, club or restaurant. Policies can be tailored to meet the needs of your individual establishment so that your protection and premium is appropriate for your risk. For example, a restaurant serving wine with food may need different protection than a nightclub serving liquor and no food.
Host Liquor Liability
While some business’ General Liability policy will cover ‘host liability’ meaning to provide coverage to policy owners who only have occasional events where liquor is served such as during a holiday party or corporate picnic. But some General liability policies can EXCLUDE liquor coverage all together. That’s why it’s extremely important to review your General Liability policy with your agent to make sure you are covered for ‘host liquor liability’ if your organization does not sell liquor but occasionally provides it or allows its consumption on your business premise.
Special Event Liquor Liability
This policy is designed for individuals or small organizations that might hold a ‘special, onetime event’ that serves alcohol such as at a wedding, fundraiser or charity event. Whether the organizer charges for the alcohol consumption or gives it for free to the attendees, this policy type will provide the coverage listed above to the organizer of the event.
Liquor Liability on a Home Insurance Policy
In general, a home insurance policy would provide liability coverage for alcohol consumed on their residence premise, but make sure to check your policy and carry the highest liability limit possible if alcohol is consumed by friends and neighbors at your home. We also think purchasing additional liability insurance in the form of a Liability Umbrella or Excess Liability policy is a good idea.
As an independent, local insurance agency in Golden, CO Denver West Insurance Brokers can help you determine the liquor liability coverage that is right for your business or organization. We have licensed agents available to assist and take your call. Email us or give us a call at 303-960-5290.