Liquor Liability Insurance Overview
Liquor liability insurance protects businesses that serve alcohol. Businesses that sell or serve alcohol often need liquor liability insurance to obtain a liquor license. Liquor liability insurance is also called dram shop insurance. Commercial general liability insurance typically excludes liquor liability. Employees fall under two liability types: vicarious liability if an employer is held liable for employee actions and negligence liability.
Ways to Reduce Costs and Coverages
There are ways to reduce liquor liability insurance costs. Premiums are based on risk exposure and claims history. Major claims can increase premiums. After a deadly 2003 club fire, some insurers left the market, increasing rates. Supplemental coverages like legal fees broaden protection. Additional insureds like property owners can be added to policies. Tracking insurance certificates is crucial. Liquor liability insurance covers legal fees up to policy limits for overserved patron incidents. Coverage suits night clubs concerned with assault.
Liquor Liability Insurance Purchasing
Average liquor liability insurance costs about $55 monthly. Buying online provides instant coverage. Beyond liquor liability, small businesses can add general liability endorsements. Liquor liability complements general liability policies that exclude alcohol-related incidents. It covers damages from overserved patrons off premises. Businesses that sell or allow drinking risk further liability requiring added coverage.