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Understanding the Different Types of Liquor Liability Insurance

Business owners that serve alcohol know they can be held liable for various types of damage that result in injury or property damage by intoxicated persons. Liquor liability insurance coverage usually protects an alcohol-serving business from claims or damages that result from their patrons’ consumption of alcohol. This is just one of two types of liquor liability insurance that a business can purchase to help cover their operational risks. Companies that do not serve alcohol, but allow the consumption of it on their premises may also be liable from injuries and losses caused by intoxicated persons. In this case, a host liquor liability insurance policy helps protect these companies.

Exploring the Differences

Liquor liability policies are usually one of two types:

  1. Liquor Liability Insurance: This is recommended for businesses that sell or serve alcohol to protect against lawsuits resulting from injuries or property damage from an intoxicated person.
  2. Host Liquor Liability Insurance: This type of coverage is advised for companies that host social events where alcohol can be consumed on the premises.

Host liquor liability insurance is often included in general liability insurance. It covers medical expenses, damages and legal costs.

Tailoring Your Coverage

As a business owner, you should consult an insurer that specializes in liquor liability coverage. The right provider can help you determine the specific type of liability coverage that your business needs with respect to risks associated with alcohol service and consumption.