What does liquor liability insurance cover?
If your business sells or serves alcohol to a visibly intoxicated person who then causes injury or damages, liquor liability insurance can pay for legal fees, settlements, and medical costs.
Liquor liability insurance can help cover:
- Third-party bodily injury
- Third-party property damage
- Legal costs
- Additional claims, such as assault and battery
Third-party bodily injury
If a patron who became intoxicated at your business injures another person, liquor liability insurance can help pay for immediate medical expenses or legal expenses if the injured person sues your business.
Example: An intoxicated customer stumbles into another customer at your bar, who falls and breaks an arm. The injured customer sues to recoup money spent on medical bills. Your policy can cover the cost of your customer's immediate medical expenses, such as the ambulance ride and emergency room visit. If a customer refuses your assistance and opts to sue at a later date, your policy can help cover the cost of legal fees.
Third-party property damage
Liquor liability insurance can cover the cost of repairing or replacing another person’s property that was damaged by an individual who became intoxicated at your business.
Example: An intoxicated customer leaves your establishment and goes on to vandalize a building. Liquor liability insurance can pay for the damages and related legal expenses up to the amount of your policy’s limits.
If a lawsuit is filed over an incident related to an overserved patron, liquor liability insurance can help cover:
- Court costs
- Attorney fees
Liquor liability insurance can be tailored to fit your business. A bar owner may wish to add assault and battery coverage to protect against claims that a bouncer injured a customer, or to secure coverage against employees drinking on the job. You can also secure coverage for specific incidents of violence, claims of mental damages, and more.
Different policies have different coverage limits, so you can choose an appropriate extent of coverage for your business, too. Talk to a licensed Insureon agent to determine which coverage areas are most important for your business and to find a policy that provides appropriate protection.
Liquor liability insurance does not cover:
- Libel and slander
- Damage to your business property
- Incidents related to underage drinking
Libel and slander
For claims of libel and slander, general liability insurance can provide protection, as long as the policy doesn’t have an exemption for alcohol-related claims.
Damage to your business property
Liquor liability insurance does not cover damage to your business property, even if it is caused by an intoxicated customer. Commercial property insurance can help pay for the cost of repairing or replacing your business property when it’s damaged or stolen.
Incidents related to underage drinking
Though incidents related to underage drinking cannot be protected against with insurance, you may have legal recourse if the minor had a realistic-looking fake ID. Train your employees to card every individual and be on the lookout for fake IDs.