What is liquor liability insurance?
Selling alcohol comes with certain risks. A business could be sued for an incident involving one of its intoxicated customers, and such lawsuits can be expensive to defend against even if the business is ultimately exonerated. That’s why Vermont businesses that serve or otherwise sell alcohol should consider liquor liability insurance.
Liquor liability insurance offers specialized liability coverage for selling alcohol. If there’s a covered incident involving a customer, policies may help with legal fees and a settlement.
Which businesses in Vermont should have liquor liability coverage?
Vermont businesses should have liquor liability coverage if they sell alcohol. This can include serving hard liquor, wine, and/or beer, as well as retail sales. Nightclubs, bars, wineries, breweries, distilleries, caterers, and stores all need a policy. In some cases, even hosts of events where alcohol is served may want coverage.
What types of incidents does liquor liability protect against?
Liquor liability policies can cover a range of incidents involving intoxicated customers. Depending on a policy’s specific terms, it could provide coverage in situations such as:
- Common Accidents: A drunk customer slips and falls, either inside or in the parking lot.
- Assault & Battery: A drunk customer is injured by an intervening bouncer.
- Fights: A drunk customer gets into a fight with one or more other customers.
- DUI: A drunk customer causes a DUI accident shortly after leaving the premises.
- Hospitalization: A drunk customer is hospitalized for serious alcohol poisoning.
Does liquor liability extend protection to incidents occurring off a business’s premises?
Many liquor liability policies cover incidents that happen off the business premises shortly after an intoxicated customer leaves. For example, a DUI accident that someone causes on the way home might be covered. So too might a fight that someone gets into as they walk out of the establishment, or a fight that starts inside but moves outside.
An insurance agent who’s knowledgeable in liquor liability can confirm whether a particular policy covers off-premises claims.
Does general liability coverage extend protection to incidents involving intoxicated customers?
Most general liability coverage doesn’t apply if an accident involves someone who’s intoxicated.
While general liability may cover a slip-and-fall accident where a customer is injured, it’s likely to exclude the incident if the customer is intoxicated. Liquor liability coverage is normally needed for accidents involving intoxicated customers.
Can liquor liability be bundled with other types of insurance?
Liquor liability can often be added to a general liability policy, but sometimes it’s beneficial to buy a separate policy for liquor.
How much do businesses pay for liquor liability policies?
The cost of liquor liability policies varies significantly. The type of alcohol sold, percentage of sales coming from alcohol vs. food, and total annual revenue can all impact premiums. So too can the type of business, its past claims history, and other factors.
To find out the cost of coverage for your business, try consulting an independent insurance agent. Independent agents have the ability to access multiple insurance carriers to help you find the best value.
Where can Vermont businesses get liquor liability insurance?
If your business sells alcohol and needs coverage, contact our independent agents at Burlington Insurance Agency. Our Vermont agents will work closely with you to help determine coverage needs and find the right policy for you.
