Our Liquor Liability product targets small to medium-sized risks that sell, serve or distribute alcohol for on or off-premises consumption. Depending on the laws in your state, you may be held liable for the actions of intoxicated or underage persons you serve or furnish alcoholic beverages to.
- The negligent service to an intoxicated or underage person can produce substantial verdicts or settlements
- Employers may be held liable for the actions of employees who sell or serve alcohol in violations of state laws
- Even if an establishment is not found liable, it may cost hundreds of thousands of dollars to defend a claim
- Underage drinkers make up a significant portion of alcohol-related traffic crashes
Product Features
- Monoline Liquor Liability product features
- Basic Form product features defense costs inside the limits of liability and an exclusion for assault or battery coverage
- Top Shelf product provides coverage for defense costs outside the limits of liability, assault or battery coverage on most risks either included or available as a buy-back up to full limits, and includes coverage for liquor license holder as an additional insured
- No deductible
- Employees covered as an insured
- Expanded definition of bodily injury to include mental anguish
- Aggregate per location offered on multi-location risks
- Credit available for responsible establishments with formal alcohol awareness training
- Eligible classes of business include:
- Restaurants
- Retail/takeout stores
- Nonprofit private, fraternal and social clubs
- Bars, taverns, adult entertainment clubs and nightclubs
- Banquet facilities
- Country clubs
- Wholesale distributors
- Bowling alleys/billiard halls
- Miscellaneous categories such as breweries, concessionaires, caterers and host liquor exposures
- Coverages and product availability vary by state.
Claim Examples:
- Bar/Tavern – A minor and his friend were served beer at a local neighborhood bar. Shortly after leaving, the underage driver lost control of his vehicle and struck a telephone pole. His friend suffered injuries as a result of the accident. Witnesses later testified that the bartender had not requested proper identification. Suit was brought against the bar claiming illegal service to a minor. The claim was settled for $60,000 and expense costs totaled $25,000.
- Concessionaire – A concert attendee was served at least eight beers over the course of the evening. On the way home, his vehicle was traveling at a high rate of speed and he rear-ended another vehicle. Two passengers in the other car were ejected from their vehicle and suffered serious injuries. Both of the injured parties brought suit against the beer vendor for negligent service. The claim settled for $1,000,000 and expense costs totaled $77,000.
- Retail Store – A 16-year-old boy purchased beer from a local retail store, and the store’s employee failed to request proper identification. The boy took the beer to an underage drinking party. His 20 year-old sister arrived to take him home and she also consumed some beer as well. On the way home, she flipped her convertible and her brother was ejected from the vehicle and died as a result of his injuries. The mother of the boy brought suit against the retail store. Even though the sister who was driving the vehicle did not purchase the alcohol, the retail store was held liable due to the illegal sale to a minor. Damages in the amount of $580,000 were awarded and expense costs totaled $100,000.
For more information or to get a quote, please contact our office at 1-800-866-0777 or click here.
* Insurance varies by state and is NOT available in all states countrywide.