If you plan on serving beer and wine you will need to make sure your insurance agent adds Liquor Liability Insurance to your policy. Most liability insurance has automatic coverage called Host Liquor Liability coverage for small functions but only for a business not in the business of selling liquor.
What Does Liquor Liability Insurance Cover?
Liquor exposure is typically excluded on a standard business liability policy. If someone gets drunk on your premises this coverage will protect your business if they injure themselves, others or someone’s property.
What does Liquor Liability Not Cover?
Liquor Liability Insurance has its own set of coverages and exclusions. It does not cover your premises or other liability exposures that are covered by your General Liability Insurance. It was designed to work with your General Liability Insurance to adequately cover your restaurant, food and liquor exposures. Make sure you review the complete list of exclusions on your policy since some carriers will exclude Assault and Battery.
A few of the standard exclusions are listed below:
- Expected or Intended Injury– Coverage will not apply to bodily injury or property damage expected or intended by the insured. This exclusion has an exception that covers bodily injury resulting from the insured using reasonable force to protect persons or property.
- Workers Compensation and similar laws – There is no coverage for any requirement or obligation of the insured imposed by any workers compensation, disability benefits, unemployment compensation or similar law.
- Employers Liability – Bodily injury to an employee of the insured as a result of employment or performance of duties in conjunction with conduct of the insureds business is excluded. Bodily injury to the spouse, children, parents, brothers or sisters of that employee as a consequence of the bodily injury to the employee is also excluded.
- Liquor License not in effect – Coverage does not apply to injury due to selling, serving or furnishing alcoholic beverages if the required liquor license is not in effect.
What do I need to know before adding Liquor Liability Insurance?
You will need to know your anticipated gross food sales and your gross liquor sales to purchase this type of coverage. You can also select the coverage limits that you desire. It is usually a good idea to match the limits to your regular liability policy.
Ways to Save On Your Restaurant Insurance Premium
Alcohol server training is usually available for you and your employees. Some carriers will require this training as a condition to providing coverage or could offer discounts for completing training.
If you are selling alcohol at your restaurant business you need to add Liquor Liability insurance to work with your General Liability Insurance. Your policy will be based on your gross liquor sales and the coverage limits you need. Liquor Liability protects you if someone get’s intoxicated on your premises and causes harm to themselves, property, or someone else.
Our Georgia Independent Insurance Agency is able to help you answer any questions you may have related to restaurant insurance. We work with numerous commercial insurance carriers and can offer you the best coverage, and personal service.
**For more information about Liquor Liability insurance contact Terri Krider at TKrider@InnerHarbourFLA.com or call 850-837-3629