If your business manufactures, sells or serves any type of liquor, then you may have to secure liquor liability insurance. This type of insurance will protect your company from liability if one of your patrons causes physical or property damage while intoxicated.

Although cost of liquor liability insurance seems high, the benefits typically outweigh the price. Liquor insurance can keep your business from suffering major losses due to lawsuits that involved an intoxicated patron.

1. Read up on liquor liability laws and your responsibility as a business owner. If you’re liable for intoxicated patrons, then you want to make sure you stay protected legally.

2. Consider the liquor liability insurance services. You want the most cost effective policy that not only covers damage, but defense costs as well.

3. Locate liquor liability insurance brokers. Your liquor liability insurance agent can walk you through inclusions and exclusions of your policy.

Action Steps
The best contacts and resources to help you get it done

Find out local laws to determine liquor liability insurance need

As a business owner in the liquor business, you should find out your local liquor liability laws. Use these laws to make a cost versus risk assessment. You may find that you can eliminate liability without the need of liquor liability insurance services.

I recommend: On the Steigerwalt & Associates website, the legal firm covers liquor liability laws and the parties that may need protection from liability. You can also choose to contact the firm to seek legal advice about liquor liability. On FreeAdvice, you can also find information on different states’ liquor liability requirements.

Look at the coverage included in a liquor liability insurance policy

You'll find that liquor liability insurance companies offer different levels of protection. Go over the benefits and cost of each plan to decide whether this will provide you with adequate protection in case of a lawsuit. As a minimum, you'll want assault and battery coverage since most lawsuits stem from this incidence.

I recommend: The United States Liability Insurance Group offers numerous liquor liability coverage plans. You can choose a comprehensive insurance plan or take out a small policy if you plan to hold a special event that will serve alcohol. If you’re in the wedding industry, then you can add on liquor liability coverage through WedSafe. Go over their plan benefits listed on the company site.

Contact liquor liability insurance agents

Once you know the benefits and laws involved with alcohol liability, you can contact a liquor liability insurance broker about getting your business covered. The company will need to know basics about your company, including business type, number of employees and annual revenue.

I recommend: Request a quote from the liquor liability insurance provider MalSal Insurance. An agent will contact you to determine eligibility for your business. Contact Wachovia to apply for their general liability insurance plan which includes liquor liability coverage.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Liquor liability insurance providers may offer discounts to companies that participate in alcohol education programs. During these classes, your staff will learn safety basics about the handling and serving of alcohol.