Does Your Business Need Liquor Liability Coverage?

Your business is important, and that is why it is important to protect your business from potential liability that may arise from the distribution, sale, or service of liquor and alcohol. Businesses that may need or benefit from Liquor Liability Coverage include breweries, caterers, restaurants, grocery stores, convenience stores, and liquor stores. Recently, we have seen record alcohol sales, and with booming business comes the potential for increased risks. If there is anything the last year has taught us, it is that anything can happen.

Are you covered from any incidents that may occur?

There are a number of alcohol-related incidents that could arise, including drunk driving, assault, harassment, and falls resulting in injuries. What if a customer was involved in a fight outside your business? What if your customer was involved in an auto accident after leaving your business and someone was injured? Do you allow employees to provide free drinks?

Liquor Liability Coverage is an important addition to your policy to protect your business from such incidents. Acuity has assisted our policyholders by investigating and defending alcohol-related claims. The Liquor Liability Coverage Form provides coverage for injuries sustained relating to the distribution, sale, or service of alcohol up to a specified limit. Without the addition of the Liquor Liability Coverage Form, coverage for these incidents would be excluded.

While it is important to have appropriate coverage, it is equally important to prevent incidents from occurring. This can include but it is not limited to providing additional training for employees to identify the signs of intoxication and having procedures in place to empower employees to take appropriate actions. It is incredibly important to train employees to recognize signs of intoxication. If your location has video surveillance, this is also an important resource.

What does your state say about liquor liability?

Liquor liability laws vary by state, so it is important to review and comply with specific state requirements. Generally, liquor liability laws are enacted to protect the general public but could create additional exposure for your business or establishment. In fact, many states have enacted laws allowing for individuals who sustain bodily injury to pursue the establishment that sold or served the alcohol along with the intoxicated individual.

If you become aware of an incident involving your business and the distribution, sale, or service of alcohol, it is important to notify Acuity as soon as possible.

Written by Kelsey Ball, Acuity Senior Field Claims Representative