What is host liquor liability insurance?

Many states have social host laws that can hold business owners liable for damage caused by intoxicated patrons or guests. Those businesses don’t serving, selling or producing alcohol – but allow it to be consumed on the premises or at an event they host – can protect their business from liquor related lawsuits with host liquor liability insurance.

This insurance can provide business owners with a wide range of coverage if a customer, employee, or other guest causes property damage or bodily harm to someone else after drinking too much alcohol. Host liability insurance can protect a wide range of businesses, including an accounting firm that serves beer and wine at a company picnic, a web design firm that allows employees to bring drinks to share on a Friday afternoon, and a restaurant that doesn’t n do that. sell alcohol, but allow customers to bring their own.

Host liquor insurance is usually included in general liability insurance, which can cover expenses resulting from third-party injuries or property damage. That means if an employee who drinks too many drinks at a company party gets into an accident that damages another car and injures the driver, the host’s liquor liability component of the business’s general liability policy can cover the driver’s medical bills injured, repairs to the damaged. car, and court costs if the driver sues the business.

What is alcohol liability insurance?

Businesses that manufacture, serve or sell alcohol may be subject to dram shop laws that hold businesses legally responsible for the actions of customers who cause harm to a third party after drinking too much alcohol. Tram shop laws are created at the state level. Currently, over 40 states have some form of dram shop law on the books.

Because businesses such as restaurants, bars and breweries are more likely to face legal action related to excessive alcohol consumption, they are usually exempt from host liquor liability coverage. Instead, companies that regularly sell and serve alcohol would need to purchase an alcohol liability insurance policy.

If a business is sued over the actions of a customer who has consumed too much, liquor liability insurance can cover the business’s legal costs, such as attorney’s bills for defending against the lawsuit, damages if the business is found liable in court, and settlements if the business owner decides to settle the lawsuit out of court.

Some policies may also cover bartenders who drink on the job; assault and battery if a fight breaks out between customers, or a customer and a bouncer; or specific incidents such as sexual assault, stabbing, shooting, etc.