FLORIDA/TEXAS— Liquor liability insurance is not to be confused with host liquor liability insurance. The liquor liability exclusion doesn’t apply to all business types. Host liquor liability is coverage under a commercial general liability policy (CGL) for businesses that have an incidental exposure to alcohol. Host liquor liability insurance covers bodily injury or property damage arising out of the serving or distribution of alcoholic beverages by a party not engaged in this activity as a business enterprise.

Commercial enterprises involved in the liquor trade usually require Liquor liability coverage.  This type of coverage is almost always excluded from commercial general liability insurance policies, meaning companies should look at buying a stand-alone policy or a coverage endorsement.

Sometimes, businesses are legally required to get this coverage before they will be given a liquor license or a commercial lease.

Some of the types of businesses that typically need a liquor liability insurance policy  can include:Businesses that typically need liquor liability insurance coverage include:

• Restaurants 
• Bars and taverns 
• Caterers 
• Breweries and wineries 
• Grocery stores 
• Liquor stores 

Any business that sells alcohol, regardless of size, is exposed to liquor liability. Liquor Liability Insurance and its benefits should be an important consideration.

Some basic factors considered in the cost of liquor liability insurance can be:

Exposure – More sales volume equals higher risk. A convenience store with 10% liquor sales can expect to pay less than a grocery store with 40% liquor sales. 

Profession – Rates vary on based on your industry. A caterer generally faces different risks than a restaurant, so rates are different as well. 

Location – Businesses will usually pay more in locations with a higher number of total claims than those with fewer claims. 

Claims history – As in many other categories, insurance companies typically view businesses with a poor claims history as higher risk. This will have an impact on rates, when compared to other businesses with no claims.

Risk mitigation for liquor liability can be challenging, but there are  a few actions you may take with proven effective results. For example:

• Send servers to training and education courses
• Encourage customers not to become intoxicated
• Promote the availability of non-alcoholic beverages
• Ask a patron to take a breathalyser test if there’s concern that they’re over the limit for driving
• Encourage patrons to take alternate transportation, like a taxi or rideshare service

Liquor liability insurance protects businesses that manufacture, serve, or sell alcohol. The policy provides coverage for legal fees, settlements, and medical costs associated with bodily injury or property damage caused by an intoxicated person, who was served or sold liquor by the policyholder.

At Garzor Insurance we care about your business. Our experienced professionals are dedicated to providing commercial insurance in Florida as well as Texas, and now many other states across the U.S. If you also have questions about truck or other commercial vehicles insurance, or any other business insurance aspects, please do not hesitate to visit us online at Garzor Insurance, or you may want to call us directly at (321) 206-8035.

Carlos Medina

Client Service Specialist