Liquor Liability Insurance

Do you need Liquor Liability Insurance?

At Eastern Insurance, we understand the liability exposures faced by business owners. Serving alcohol at a special event or owning a business that serves alcohol always involves an element of risk. Liquor liability insurance protects your company against loss or damages claimed as the result of patrons of your business becoming intoxicated and injuring themselves or others. If your business manufactures, sells, serves, or facilitates the use or purchase of alcohol, then you need liquor liability insurance coverage.

There has always been a great deal of confusion about the need for liquor liability – even among insurance professionals. Liquor liability laws vary greatly by state, and insurance policy coverage options are often confusing. Here is some basic information on the subject:

  • “Dram Shop” Laws: hold alcoholic beverage servers financially liable for harm that visibly intoxicated individuals cause to other people, themselves, or property. These laws are established at the state level. They can apply not only to bars, liquor stores, and restaurants, but also to social clubs and private events where liquor is served. Dram shop laws also include selling liquor without a license, selling liquor after hours, and selling liquor to minors.
  • Liquor Legal Liability: provides coverage for bodily injury or property damage for which you may become legally liable as the result of contributing to a person's intoxication. This coverage is provided by a separate policy and will cover only establishments 'in the business of' manufacturing, selling, distributing, or serving alcoholic beverages for a charge. This exposure is not covered under a general liability policy.
  • Host Liquor Liability Insurance Policies: cover special events for businesses that elect to serve alcohol to their employees, prospects, and customers. This type of liability insurance is also needed by people and businesses serving or providing alcoholic beverages to customers, guests, or employees.

How can Eastern Insurance help?

Court decisions coupled with new state statutes are holding vendors of alcoholic beverages increasingly responsible for damages under liquor liability laws. Nevertheless, liquor liability insurance continues to be a quiet – if not dwindling –- market around the country. In fact, more than half the establishments in the United States choose to operate without liquor liability insurance coverage.

At Eastern Insurance, we provide a full review of your exposures to provide a comprehensive insurance program that will protect your company, at a fair and competitive price. We pride ourselves on taking care of our clients and their interests

Eastern Insurance offers unique advantages, including:

  • 24/7 claims coverage and response
  • A wide selection of insurance carriers. We have relationships with more than 50 regional and national insurance companies
  • An experienced team of professionals who can help tailor plans for you

Our experienced professionals understand the unique needs of your business, as they are also members of most industry associations. As a result, we can help you identify, analyze, and calculate risks and tailor a competitive solution that helps you manage them.