The Liquor Liability Insurance Policy is designed to pay damages that the insured is legally obligated to pay for an “injury” arising out of the insured’s business of selling, serving or furnishing alcoholic beverages.

Important things that you need to know about Liquor Liability Insurance:

  • Liquor liability is excluded by the commercial general liability policy for organizations that are in the business of manufacturing, selling, distributing, serving or furnishing alcoholic beverages.

  • A patron being involved in an automobile accident after consuming alcoholic beverages at the named insured’s premises would fall under the liquor liability coverage. However, a patron that causes a fight on the premises may or may not be clearly covered. It is possible that the fight resulted from the insured’s negligent security operations. In this case, the claim may be addressed by the insured’s general liability policy as well as the liquor liability. It is important, where applicable, to have both lines of coverage with the same insurance carrier.

  • Some liquor liability policies are designed only for a specific state statute while others are designed to cover both statutory and common law liability.

  • The liquor liability policy will not respond to any claim arising out of any alcoholic beverage sold, served or furnished while any required license is not in effect. If the liquor license has expired and has not been renewed, there will be no coverage.

  • One of the primary exposures of establishments that sell, serve or furnish alcoholic beverages is responsibility for altercations that occur on the premises. Therefore, a liquor liability policy with an assault and battery exclusion would defeat the purpose of buying the insurance. These policies must be read carefully and reviewed by an insurance professional.

Swingle, Collins & Associates specializes in liquor liability insurance coverage in Dallas, Southlake, Westlake, Plano, Coppell, Irving, Argyle and the surrounding areas.  The descriptions of liquor liability insurance coverage listed on this website are brief and subject to the provisions, limitations, and exclusions that can only be expressed in your policy and related endorsements. For additional information of how Swingle, Collins & Associates can assist in meeting your coverage needs please contact your dedicated risk manager to discuss the benefits and services of commercial inland marine insurance coverage.

The information contained on this page is provided for informational and educational purposes only. It contains general information on insurance issues and may not reflect the most current developments in insurance coverage and is unlikely to apply in all factual scenarios. The information does not include all the terms, coverage, exclusions, limitations or conditions that may be contained in the actual insurance contract language. The policies themselves must be read for those details. Sample policy forms will be made available upon reasonable request.