Do You Need Liquor Liability to Get a Liquor License?

Opening a bar or restaurant, or hosting an event where liquor is served, can be an exciting business endeavor, but it’s one that’s rife with regulations to follow. If you’re wondering if you need liquor liability insurance for your liquor license, the short answer is usually yes, and it usually depends on your state and local regulations.

What Is Liquor Liability Insurance?

Liquor liability insurance helps financially protect businesses from claims related to the sale or serving of alcohol. This coverage typically can help pay for the following:

• Legal defense costs
• Settlements and judgments
• Medical expenses
• Property repairs

What Is Covered by Liquor Liability Insurance?

The following are typical coverages of a liquor liability insurance policy:

• Bodily injury—This may cover repairs related to an intoxicated person (who was served at your business or event) causing damage to someone’s property.
• Legal costs—This may include attorney fees and court costs if your business is sued due to an alcohol-related incident.
• Assault and battery—This is included in some policies in the event a patron you served assaults someone.
• Drunk driving incidents—This may cover your business from claims if a customer you served causes a crash.

What Isn’t Covered by Liquor Liability Insurance?

Liquor liability insurance has limitations to what it covers; for instance, claims involving minors are often excluded, as it’s illegal to serve them alcohol. Damage to your own property or injury to your employees is typically covered by other policies, such as commercial property insurance or workers’ compensation.

Contact Us

While it’s wise to carry liquor liability insurance for the financial protection it offers businesses that serve alcohol, it’s often also required by law. The professionals at Statewide Insurance Agency in Murray, UT can help you remain compliant with local and state laws while helping you select the best policy for your needs and budget. Contact us today for more information or a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.