Liquor liability insurance is business insurance that protects your business against loss or damages claimed as a result of a patron of your business becoming intoxicated and injuring themselves or others. If your restaurant sells, serves or manufactures any form of alcohol, beer or wine, then your business will need this coverage.
Liquor liability coverage may be sold as an add-on to a commercial liability policy or as a separate liability policy if needed. But, if you do not purchase this extra coverage your standard general liability policy DOES NOT protect your business against these kind of claims.
Experts estimate that only 35% of restaurants in the Bay Area have this coverage protecting them. Part of this is because of misconceptions that exist in the hospitality industry regarding the industry’s liability risk for intoxicated patrons.
If you have any questions, please send me an email.