As we near the end of the year, we enter a new decade of liquor liability potential. Businesses will be rushing to capture a coveted government liquor license; however, it does no good without the right insurance policy. For some establishments, the E&S market may be their only option for coverage. In this post we outline some of the risks that can be covered by a liquor liability policy placed with a specialty insurance broker.
Businesses that serve, sell, or support the purchase and/or use of liquor could be held liable in a claim. The liability exists when injuries or property damage are a result of a patron getting intoxicated in your insured's business. This is why it's so important to have the proper coverage for bars, restaurants, taverns and other establishments that serve liquor.
The process of serving liquor to patrons is inherently risky. Insurers often shy away from liquor risks because of Dram Shop laws. A Dram Shop law is a state statute indicating that a business which sells alcoholic beverages, or someone that serves alcoholic beverages to a drinker who is obviously intoxicated or close to it, is liable to any persons injured by a drunk customer or guest. Simply put, the victim of a DUI related accident could sue the bar where the driver, or defendant, purchased their last drink. Often the damages for a DUI lawsuit are split between the defendant and where the alcohol was served.
When it comes to marketing liquor liability we encourage you to think beyond the bar. Many types of establishments are seeking reliable liquor liability coverage. These business classes include:
- Fine Dining Restaurants
- Non-profit, Private, Fraternal and Social Clubs
- Caterers
- Nightclubs
- Country Clubs
- Bowling Alleys
- Breweries
- Special Events
In addition to placing most classes, an E&S broker can assist with unique features of the business such as establishments open 24 hours, new ventures, locations with major entertainment venues and even businesses with prior losses or violations.
We encourage you to pour some time into advertising this coverage in Q1 of 2020. If you have any questions about whether your risk can be placed, give us a call at 1-800-548-4301 and we'll connect you with an Underwriter who can review what's on your desk. Need some assistance marketing liquor liability to your clients? Download this flyer and social media post to start advertising today!
