- How Much does Liquor Liability Insurance Cost?
- Types of Liquor Liability Insurance
- Who Needs Liquor Liability Coverage?
- What does Liquor Liability Insurance Cover?
- What doesn’t Liquor Liability Insurance Cover?
How Much does Liquor Liability Insurance Cost?
Liquor liability insurance varies quite a bit depending on several factors:
- State laws
- How much alcohol you sell
- Claims history
Insureon estimates that liquor liability insurance ranges from $225 a year for retail, to $2,060 for bars.
How can I Save Money on a Liquor Liability Policy?
There are a few things you can do.
- Bundle your policies. Buy your liquor liability policy from the same company you purchased general liability insurance.
- Provide employees with alcohol service training
- Make food readily available
- Pay your entire premium at once
Types of Liquor Liability Insurance
Liquor liability insurance for bars and restaurants
If you run a bar or a restaurant, you hopefully already have general liability insurance. General liability insurance protects your business against bodily injury and property damage. However, coverage for alcohol-related incidents is very limited under general liability insurance, and in some states it’s not covered at all. This means if you run a bar or a restaurant, you need liquor liability insurance. Many states make it mandatory to get liquor liability insurance when you apply for a liquor license.
Host liquor liability insurance
Host liquor liability insurance is usually included with general liability insurance. This protects someone who is not in the business of selling, serving or manufacturing alcohol from alcohol-related damages. For example, your accounting firm throws a company party and someone has one too many martinis. He then gets in his car and on his way home, hits another car, resulting in damage to the car and injury to the driver. In this case, general liability insurance should cover the accounting firm because they are not in the business of selling, serving, or manufacturing alcohol.
Host liquor liability insurance coverage only applies if you’re not charging for drinks. If you are charging for drinks, even by way of tickets to a party, you need liquor liability insurance.
Forty-three out of 50 states have what is called “dram shop liability” or social host liability laws on the books. This means your bar or restaurant could be held accountable for intoxicated patrons who injure people or damage property.
Temporary event or one-time liquor liability insurance
What if you’re hosting a huge wedding and planning to serve alcohol? According to The Knot, getting a general liability insurance policy for your wedding is a good idea. It costs about $185 and includes $1,000,000 worth of coverage for accidents, including alcohol-related accidents. You can also purchase a “temporary event” or one-time liquor liability insurance policy. The cost depends on how many people are attending and how long the event will last.
Keep in mind, though, if you are holding your wedding at a banquet hall or restaurant, they likely have liquor liability insurance already. Wedding insurance may be helpful if you’re hosting a wedding in your backyard, a park, or in a venue that you own.
Who Needs Liquor Liability Coverage?
- Breweries and wineries
- Grocery stores (if they sell alcohol)
- Liquor stores
What does Liquor Liability Insurance Cover?
Liquor liability insurance protects you in case you serve someone who is intoxicated and then they go out and cause injury to someone or damages to someone’s property. Liquor liability insurance can cover:
- Third-party bodily injury
- Third-party property damage
- Legal costs
- Additional claims, such as assault and battery.
What doesn’t Liquor Liability Insurance Cover?
Liquor liability insurance doesn’t cover everything. It won’t cover:
- Damage to your own property
- Advertising injuries
- Any claims that involve under-age drinking