Liquor Liability is designed to provide liability insurance protection for businesses who manufacture, distribute or sell liquor. While most are fully aware that Restaurants, bars and Liquor stores have liability exposure. What happens if a business or homeowner doesn’t sell liquor but rather provides drinks at the annual Holiday party or gathering at their home?
When a business or a homeowner provides liquor to its guest without a fee. There may already be coverage on their respective policies.
A Business general liability or business owner policy often includes host liquor liability coverage to specifically cover claims related to a social event where a guest may drink too much and cause property damage or bodily injury due to the intoxication.
A Homeowner insurance policy may provide social host liability up to the liability limits on the policy. Typically up to $300,000 in coverage. Sub-limits may apply which may lower your coverage.
There are ways to Protect your guests and yourself. If you are hosting a party or event always promote responsible alcohol consumption along with the following:
1. Have options other than your home for the event. Transferring this risk to a restaurant or bar may be a wise choice.
2. Know and understand your state and local laws and the extent you may be legally responsible.
3. Either provide or encourage designated drivers. Maybe Uber will provide a discount if your willing to buying in bulk?
4. Hire a bartender. At a minimum they will be trained to recognize signs of intoxication. Best case scenario ask for a copy of their liquor liability coverage and transfer the risk to them.
5. Always offer options such as non alcoholic drinks and always serve food.
6. Call your Insurance Agent and review your policy to ensure you have the coverage you need.
Call our office at (210) 757-4520 to review your options.
Joseph Gutierrez, CIC