If your business involves manufacturing, distributing, selling or serving liquor, you should consider acquiring a Liquor Liability policy, because standard General Liability policies do not cover such activities.
The Liquor Liability coverage policy provides coverage for bodily injury and property damage for which you may be liable by reason of:
- Causing or contributing to the intoxication of any person
- Furnishing alcoholic beverages to a person under the drinking age
- Furnishing alcoholic beverages to a person already under the influence of alcohol
- Violating any statute, law, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages
What’s covered
The insurance company agrees to pay the sums you are legally obligated to pay as damages because of injury covered by the insurance, if the liability for the injury is imposed on you because you are involved in selling, serving or furnishing any alcoholic beverages. The insurance company also has the right and duty to defend you against any suit seeking damages if the coverage provided applies to the damages alleged in the suit.
What isn’t covered
Every insurance policy has certain exclusions and limitations. This is because the coverages are either needed by only specific types of businesses or the risk or exposure to loss is not considered insurable for one or more reasons:
- expected or intended injury
- workers compensation and similar laws
- employer’s liability
- liquor license not in effect
- your product
- other insurance
- acts of war