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Protecting Clients with Liquor Liability Insurance

Protecting Clients with Liquor Liability Insurance

Any one of your clients manufacturing, selling, or serving alcohol should be aware of liquor liability insurance. In the event of bodily injury or property damage stemming from intoxication, your clients are at risk. However, with this insurance, clients have protection from the legal fees, medical costs, and other risks associated with liquor.

People involved in selling or serving alcohol may think that it’s the intoxicated person who is legally responsible for their actions. It’s a common misconception. In reality, businesses involved in serving or selling that alcohol often hold some liability. That liability can be expensive, which is why your clients need protection against those financial losses.

Many insurance companies stay away from liquor liability, given the amount of risk inherent to this policy. That is not the case with Prime Insurance Company. With our flexible underwriting and skilled in-house risk management, we can find insurance solutions where other companies decline.

By partnering with Prime Insurance Company, you and your clients will benefit. Your clients will get the liquor liability protection they need to remain successful. You can write more business and better serve your clients and their specific needs.

The Value of Liquor Liability Insurance

Situations putting establishments selling or serving alcohol at risk are frequent. Whether it’s fights amongst patrons, needing to physically eject an intoxicated customer, or the unfortunate realities of over-serving, liability is everywhere. These risks are not covered under general commercial liability policies, necessitating more appropriate coverage.

In nearly every location, liquor liability insurance is a necessity to sell alcohol. If your clients want to offer liquor, they must secure this insurance before doing so. Prime Insurance Company makes it affordable and efficient, offering tailored coverage.

What about organizations serving liquor as a one-time event? Or businesses serving to guests or prospects? If your clients are in these situations, they still need liquor liability insurance. Options like host liquor liability insurance policies ensure they have coverage if something goes wrong.

No matter the situation, liquor liability lawsuits are quite common. In Florida, plaintiffs sued famous golfer Tiger Woods when their son died in a car crash with a high blood-alcohol level. The man had been drinking at a sports bar owned by Woods. Allegedly, the man was over-served despite a known history of alcoholism. Woods was ultimately removed from the suit, still ongoing.

Suits in this area can be very costly. In New Jersey, a jury awarded $135 million to the family of a girl paralyzed in an accident caused by a drunk driver. The driver was over-served at a football game and compensatory damages were assessed against the driver and the stadium concessionaire serving the alcohol. The verdict was the largest alcohol liability award in the country in at least 25 years. This case is also an example of why careful risk management is so critical. Even though the stadium shuts down beer sales after the third quarter, the vendor sold liquor at the start of the third quarter. Though fans could only buy two beers at a time, the driver tipped the bartender enough to buy six beers.

Risk Management and Liquor Liability

Liquor liability insurance is crucial. Yet, it will not cover every scenario. For example, businesses are legally obligated to stop serving alcohol to patrons who are too intoxicated to drive. If that patron is over-served, drinks and drives, and causes an accident, insurance may not provide coverage.

This is why risk management and mitigation is so important. Your clients must be proactive, training employees, measuring drinks, and encouraging designated driving and alternative transit. Our in-house risk management team will assess each client’s situation and make personalized recommendations to reduce the risk of a claim.

If a claim stems from liquor liability, our team works equally hard to manage that situation. Again, our team is in-house, with industry experts and legal professionals determining all of the facts and options for your client. We get fair results for fair claims, working directly with policyholders and insurance producers.

When your clients are working with liquor in any capacity, you can rely on Prime Insurance Company. Call us at 800-257-5590 or email us at info@primeis.com for more information on how your clients can protect themselves with liquor liability insurance. You, or they, can also visit our online insurance application to get started. To keep up with Prime online, visit us on FacebookTwitterYouTubeLinkedIn, and Instagram or visit our website.


rick lindseyAuthored by Rick J. Lindsey, CEO, President, and Chairman of Prime Insurance Company

Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. Prime Insurance also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are Prime Insurance can help.

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