Liquor, Wine, and Beer Store Insurance

Several factors affect insurance premiums for liquor stores, wine shops, and similar businesses during the underwriting process, such as:

• Services offered: The services you offer, such as delivery or catering, will affect how much you pay for insurance.
• Business property and equipment: It will cost more to insure a brewery or a winery with manufacturing equipment than a retail store.
• Annual revenue: Liquor stores that bring in more revenue usually have greater exposure to liability claims and other losses, which increases your insurance rates.
• Business location: Insurance costs can vary based on property values, litigation trends, crime rates, risk of severe weather, and other regional factors.
• Coverage limits and deductibles: Higher policy limits provide coverage for more expensive claims at a higher cost, while choosing a higher deductible lowers your premium. Remember, your policy won't activate until the deductible is paid.
• Claims history: Shops with previous insurance claims can expect higher rates than those with a clean history of claims.
• Number of employees: Each additional staff member increases your insurance premiums because they each bring the risk of an injury or lawsuit.

Any business that sells alcohol or tobacco needs to have the right federal and local licenses and comply with regulations.

Here's what your shop likely needs to operate:

• Business license. Every business owner typically needs a general business license.
• Liquor license. To sell alcohol, you'll need a liquor license issued by your state and approved by your city or county.
• Seller's permit. You need a seller's permit from your state's tax or revenue agency in order to sell alcoholic beverages and other tangible goods.
• Tobacco retailer's license. Businesses that sell cigarettes and other tobacco products need to obtain a tobacco retail license from their state, county, and/or city, depending on their location.

Keep in mind, your business must also comply with local ordinances, zoning regulations, and Occupational Safety and Health Administration (OSHA) workplace safety standards.

Yes, liquor liability insurance is often needed in order to get a liquor license and operate a liquor store or wine shop legally. However, it depends on the laws in your state, county, and city.

Here are a few examples:

• California does not require liquor liability insurance on the state level, but individual cities, counties, and venues may require it.
• Massachusetts mandates minimum liquor liability limits of $250,000 per person and $500,000 per accident for licensed establishments that sell or serve alcohol.
• Pennsylvania is a strict dram shop state with state-run liquor stores and no private sellers. Bars, nightclubs, and other licensed establishments must carry liquor liability coverage in the amount of $1 million per occurrence and $2 million aggregate.
• Oklahoma requires liquor stores and wine shops to have general liability insurance to obtain a liquor license.

In states with dram shop laws, it's crucial to carry liquor liability insurance, even if it's not required by law. If your business is held responsible for the actions of an intoxicated customer, you could end up paying hundreds of thousands of dollars out of pocket.

Insurance helps pay for attorney's fees, judgments and settlements, property repairs, medical bills, and countless other costs, helping you recover quickly after an incident. Having coverage can help you get licensed, and you may need it for event venues or a commercial lease.

Sellers of liquor, wine, and beer often invest in the following insurance products to protect against unexpected out-of-pocket costs:

• Commercial property insurance covers your building, inventory, cash registers, and other property at your business location in the event of a fire, storm, or burglary.
• Business interruption insurance helps your store recover from a temporary closure and loss of income caused by a burst pipe or other covered property claim. It's also called business income insurance.
• Equipment breakdown insurance protects against financial losses caused by the unexpected failure of a refrigeration unit, point of sale (POS) device, or other important equipment.
• Crime insurance pays for losses caused by employee theft or fraud, such as a worker who steals inventory or makes off with cash from the register.
• Cyber insurance helps businesses recover financially after a cyberattack or data breach, and often provides resources to prevent cyber incidents as well.

Insureon's licensed agents can help you find any specialized coverages you may need and answer any questions about insurance for your store.

It's easy to find affordable business insurance with Insureon. Our easy online application lets you compare quotes from trusted insurance companies to find policies that fit your budget and your unique risks.

Other ways for liquor shop owners to save money on insurance include:

• Bundle policies. You can often save money when you purchase two or more types of coverage in one package, such as a business owner's policy.
• Pay the annual premium. Insurance providers usually offer a discount when you pay the annual premium in full instead of making monthly payments.
• Customize your coverage options. Choose lower limits or higher deductibles to reduce your premium, but make sure your coverage is sufficient to cover a claim and that you can afford to pay the deductible in a crisis.
• Avoid accidents and claims. Policyholders can prevent employee injuries and customer accidents that lead to claims by training employees, installing a security system, and implementing other risk management strategies. A clean claims history helps keep your premium low.

Our insurance agents can help you find the right insurance solutions for your business, whether you own a liquor store, a wine shop, a grocery store, a convenience store, or any other shop that sells alcohol.