What Is Liquor Liability Insurance?
Liquor Liability or “Dramshop” Insurance protects a company that sells, serves, or manufactures alcohol products, against claims that occur when a patron drinks too much and injures himself or someone else. This includes after they have left your establishment.
The technical definition: Coverage for bodily injury or property damage caused by an intoxicated person who was serviced liquor by the policyholder.
You can be held liable for your patrons’ actions and wrongdoings when you’ve sold them alcohol. Alcohol can impair the judgment of the consumer. Consequently, if your business is serving it, you must prepare yourself for what happens next. Restaurants, clubs, taverns, breweries and bars can be held liable when serving alcohol in any form, including wine, beer and spirits.
Liquor Liability Insurance protects your business in the event of an incident; your standard general liability insurance policy likely will not cover an alcohol-related incident.
Do I need Liquor Liability Insurance?
This is a great question. Do you sell alcoholic beverages? Then yes, you need this coverage. In Connecticut in order to obtain a liquor license, you must provide proof that you carry liquor liability insurance. Even if this wasn’t a required insurance product, why would you risk it?
When you operate an establishment that sells alcohol your exposure is very different than an accounting firm for example. Be proactive. You need to make sure that your staff has proper “Tips” training. They need to understand how not to over-serve a patron. If an intoxicated customer leaving your place of business causes an accident or injury to another party or themselves, they can turn around and sue you for over serving them. If you don’t carry liquor liability insurance, your standard general liability policy won’t provide the coverage needed to protect you.
What happens if you aren’t a business that sells alcohol, but you offer it at a company function? Are you still liable? How do you protect yourself?
Host Liquor Liability Insurance is the answer! Host liquor liability insurance is for businesses that serve alcohol occasionally, but do not sell it. These companies can be caterers, event organizers, nonprofits and any company having a private event.
What does Liquor Liability Cover?
This coverage protects a business owner in the event that an accident or altercation occurs involving someone who has been served alcohol at your establishment. This insurance helps protect your assets from damages awarded to another party in a lawsuit.
For more information reach out to Daigle & Travers Insurance. We have three convenient locations in Connecticut: Wilton, Darien, and Westport. One of our many experienced insurance professionals will be able to guide you through the insurance process. We can customize a policy package tailored to your business. Reach out to us at 203-655-6974 or firstname.lastname@example.org.