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Did you know that 35 states and the District of Columbia have strict dram shop laws in place? <br><br>The law states that a business is liable for the consequences of selling alcohol to minors or visibly intoxicated people. <br><br>Liquor liability can be very confusing if you serve alcohol, and you are not fully aware of the dram shop laws. Strict law extends the liability of businesses dealing with alcohol. You might be liable if a drunk patron causes harm to a third-party. <br><br>Therefore, liquor liability insurance is essential. <br><br>Liquor liability insurance is an insurance policy that covers losses related to liquor liability for businesses that sell or serve alcohol to their customers. <br><br>A standard liquor liability insurance will cover third-party bodily injury, property damage, and legal fees. However, you can endorse some specialized coverage options as per your need. However, any policy cannot cover some unethical activities unlicensed sale of alcohol. Therefore, you must know what is insurable and what is uninsurable before you file a claim. <br><br>Discuss this with your insurance agent and make sure you are safe. <br><br>To know the details of a standard liquor liability insurance package, click here: <br><br>https://quotezebra.com/liquor-liability-insurance/ <br><br> <br><br>
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Liquor Liability Insurance - Promote Responsible Drinking
What is liquor liability insurance? • Liquor liability insurance is an insurance policy for businesses that sell or serve alcohol to customers. • It provides coverages for alcohol-related claims arising due to the actions of drunk patrons. • This policy is sold as an add-on to a commercial liability policy or as a separate liability policy as well.
Why do businesses require liquor liability insurance? • The dram shop law holds businesses accountable for selling alcohol to an intoxicated person if it causes property damage, injuries, or even death. • Therefore, liquor liability insurance is essential for businesses operating in states that follow the dram shop law.
What are the state requirements for liquor liability insurance? • Insurance Services Office introduced a scale of 1-10 to determine liquor liability insurance requirement of each state. • Grades represent the extent of liability a state imposes establishments dealing with alcohol or alcohol-related products. • A state with lower grade has lesser exposures for establishments operating with sales or supply of alcohol.
State Laws • 35 states and the District of Columbia hold businesses responsible if they serve alcohol illegally. • That means, a business is liable if they sell alcohol to minors and visibly intoxicated people • Other states with dram shop laws limit liability to cases where establishments serve alcohol to a minor. • Only states without dram shop laws are: Delaware ,Kansas, Louisiana, Maryland, South Dakota, Virginia, Wyoming
Coverages of Liquor Liability Insurance • Third-party bodily injury • Third-party property damage • Legal fees coverage
Exclusions and Endorsements Some exclusions from liquor liability insurance that you can endorse to your policy are: • Assault and battery exclusions • Mental injuries coverage Some absolute exclusions from liquor liability insurance are: • Anticipated or intended injuries • Liquor license not in effect • Offsite alcohol transactions
Lines of businesses that need liquor liability coverage • Bars • Restaurants • Breweries and Wineries • Liquor stores • Caterers • Grocery Stores that sell beer • Event spaces
Factors that Determine Cost of Liquor Liability Insurance • Type of business • Profit • Insurance claim history • State in which you are operating business
