Liquor Liability

Liquor Liability: What You Need To Know

Liquor Liability Insurance is intended to help protect your clients against claims resulting from the sale or service of alcoholic beverages at their establishment.

If someone is intoxicated or has been over-served, then that person may become involved in an incident or accident. If that person causes an accident at or outside of your client’s business or personal establishment, your client may be held liable depending on the circumstances.

Given the nature of the business, it is crucial that they’re prepared to defend against claims that can arise out of the serving, selling, or furnishing alcohol to people who are underage or guests.

The Risks of Providing or Serving Alcohol

Assume many risks when serving alcohol, including:

• assault and battery
• bodily injury
• property damage
• serving or selling to minors
• over-serving guests
• and more!

Liability risks can be a major concern for any bar, tavern, nightclub, restaurant, hotel, apartment complex, special event, or other establishment offering alcohol to consumers. In fact, in some states, the fines and penalties for serving under-aged or intoxicated guests can be placed on the establishment owner or business operator.

Drinking and driving accidents are always possible due to the effects of alcohol on the human body. So the probability of injury or death is always a concern when someone has been over-served.

Host liquor is another concern. For example, if your client is hosting an event where liquor will be served to customers, there’s always a chance of over-serving and intoxication. There could be a claim for failure to control the alcohol consumption.

Who Needs Liquor Liability Coverage?

In short, any person or business that provides the sale, service, or furnish of liquor needs this coverage. If your client falls under this category, make sure they’re aware of this type of coverage and have Prime customize their coverage or fill the gap.

An individual might host a party and want coverage in case guests are over-served and someone gets injured and decides to sue the host.

Numerous businesses need liquor liability coverage, including:

• Bars and taverns
• Nightclubs
• Restaurants
• Comedy clubs
• Sports stadiums
• Concerts and festivals
• Weddings
• Banquets
• Commercial venues
• Any business, venue, or establishment hosting a special event

Types of Liquor Liability Coverages

Prime Insurance Company offers liquor liability packages and offers additional coverage options common among this type of entertainment risk class such as assault and battery, special events, amusement devices (including mechanical bulls), individual liability for security personnel (bouncers, bartenders, servers, performers, etc.) and much more.

Our ability to customize coverages in a package promotes more options and solutions to insurance producers!

Assault and Battery Coverage

One of the most popular coverages used in conjunction with liquor liability coverage is assault and battery. It can provide coverage for the following scenarios:

• An employee, such as a bouncer, injures a customer
• A customer injures an employee
• A fight breaks out and multiple injuries occur
• And more

Prime can provide assault and battery coverage as part of a brand new policy your client needs or we can customize their existing policy.

Why Choose Prime As Your Insurance Partner?

There are many reasons why you should choose Prime as your insurance partner but here are some highlights: 

Partnership Approach

At Prime, we build trusted relationships and want all parties to be involved. We arrange a phone call with every potential insured to provide fast, flexible underwriting for every client. From our underwriters to our legal team, the insured, and the producers — at Prime, everyone is considered a partner and our processes are designed for the mutual benefit of all parties involved.

“A” Rated Carrier With 40+ Years of Experience

The strength and stability of Prime have led us to over 40 years of experience in the insurance industry. We know a thing or two when it comes to writing insurance coverage for liquor liability.

In-House Teams 

We have it all – underwriting, legal, risk management, policy services, etc. You will have direct access to our staff and services, ready to assist you! We even have an in-house claims hotline if an incident or claim occurs, available 24/7.

Extraordinary Claims Results 

We pride ourselves on our ability to handle claims in-house and effectively. Prime’s team of attorneys and adjusters are here to assist you every step of the way. Unlike most insurance companies, Prime fights frivolous lawsuits. We will be by your side every step of the way!

About Prime Insurance Company

Prime Insurance Company is an excess and surplus (E&S) lines insurance company, specializing in property and casualty insurance for specialty and unique risks.  Prime writes E&S business in all 50 states and is rated “A” (Excellent) by A.M. Best. Prime has also earned a Financial Stability Rating® of A” (A Double Prime), Unsurpassed, from Demotech, Inc. The most current Financial Stability Rating^® must be verified by visiting www.demotech.com.

By managing underwriting, policy services, risk management and claims handling in-house, we have a proven track record of providing insurance services in a cost-effective, focused manner with both the producer and the insured in mind. Prime currently produces in excess of $300 million gross premiums annually and has offices in Salt Lake City, UT; Chicago, IL; Exton, PA; and Naples, FL.