Serving alcohol, and thus Liquor Liability Insurance, has been a common feature for many restaurants, bars, and catering companies for decades, causing this coverage to often be a simple renewal year after year. However, many establishments are finding new ways of serving their customers, primarily through pickup and delivery options, making a review of liquor liability a necessity.
What is liquor liability?
Liquor Liability refers to your business’s legal and financial responsibility for the actions of individuals who consume alcohol at your establishment. Under liquor liability laws, a business can be found liable for both the bodily injury and property damage caused by a person they improperly served alcohol to.
What is Liquor Liability Insurance?
This type of insurance specifically covers damages that result from things like fights, careless behavior or automobile accidents caused by individuals who have consumed alcohol. It is important to note, damages related to intoxication are not covered by a General Liability policy.
What has changed?
In communities across the nation lawmakers have pushed to permit home alcohol delivery and curbside pickup either permanently or temporarily to help shore up an industry hit hard by the ongoing COVID-19 crisis.
Why it matters
Some Liquor Liability Insurance policies may only apply to costs associated to incidents of intoxication which occur on the business’s premises and have not caught up with the trend of alcohol being provided curbside. New questions of liability are arising, including who is liable if an intoxicated patron is delivered alcohol curbside and has an incident which results in bodily harm or damages, such as an automobile accident? What is the responsibility, if any, of the server when delivering an order curbside when it comes to intoxication?
While it may be tempting to focus on recouping lost revenue options presented by the loosening of alcohol laws, it is important to first verify that you have liability coverage should a claim arise.
The best way to protect your business from potential claims is through risk management and proper insurance. Insurance policies can be complex which is why you should discuss any changes to your establishment with a qualified insurance advisor. Contact Concklin Insurance today to learn more.