“A guy walks into a bar…”

Many entertaining stories begin this way, but for business owners who engage in the sale or service of alcohol, the story can turn into a nightmare without adequate liquor liability insurance.

What happens when an intoxicated person walks into your client’s restaurant, orders one drink, and commits vehicular manslaughter on his drive home? Your client may not have overserved the patron, but the victim’s family sues your client for civil and criminal damages. The financial ruin from that one drink could have been prevented if your client carried liquor liability insurance.

Who needs liquor liability insurance?

Any business that sells, serves, manufacturers, or provides alcohol needs liquor liability coverage. While bars, nightclubs, and restaurants are the obvious clients for coverage, craft breweries, caterers, hotels, country clubs and any venue which permits guests to consume alcohol, whether purchased or not, is liable for alcohol-related claims.

Businesses that host events, such as wedding receptions or festivals, are also vulnerable to alcohol-related claims. Consider what would happen when a caterer serves alcohol at an open bar event and two intoxicated guests start a fist fight. Even though the guests did not pay for the drinks, the catering company can be held liable for damages resulting from serving alcohol.

What is covered by liquor liability insurance?

Damages resulting from the actions of intoxicated patrons are often not covered under most standard liability policies. That’s why a separate liquor liability policy is crucial for business owners engaged in the sale, service, and manufacture of liquor.

Liquor liability policies can provide coverage for many instances unique to alcohol-related claims:
• Assault and battery
• Mental damages
• Property damage
• Court defense costs
• Sexual assault
• Medical expenses
• Employees as patrons

Isn’t liquor liability insurance expensive?

Even with highly trained and experienced severs working under the watchful eye of diligent supervisors, accidents happen. It only takes one intoxicated patron to make one bad decision to bring about costly damages. If your client chooses to save a few dollars today by forgoing liquor liability coverage, lawsuits resulting from the actions of one intoxicated patron could bankrupt your client.

Contact Atlantic Specialty Lines to find out how we can help you protect your client from alcohol-related claims by securing liquor liability coverage.