YOU ASK:

How much is liquor liability insurance?

WE ANSWER:

The most basic liquor liability insurance coverage will cost around $500, but it can be more, depending on the kind and size of the business you have. The premiums will be lower if all you need is a host liquor liability insurance that will cover you if you will serve liquor at an event such as a wedding reception. For host liquor liability, the cost may be from $50 to $120.

You will need regular liquor liability insurance if you are serving or selling alcohol. You may also need liquor liability insurance if your company manufactures or facilitates the purchase or use of liquor. This coverage protects you in case someone gets drunk, injures himself or someone else or does damage to property.  This is particularly necessarily when you are operating in a state that has a "dram shop liability" law.

Cost Factors

The cost will really depend on the policy limits you choose, the kinds of coverage you opt for, as well as the kind of alcohol you serve or sell, your opening and closing hours and the capacity of your business space - how many people you can serve or sell to at any one point.

It will be cheaper to get liquor liability insurance coverage as an add-on to your commercial liability policy. But you can also opt to get this cover as a separate policy. Please take note that you will need particular liquor liability, since a commercial liability policy excludes any risks involving your sales or serving of liquor.

Kind of Coverage

Your cost will depend on the extent of coverage your policy will have:

  • Defense costs. This will provide you with funds to mount a defense against a liability claim.
  • Assault and Battery coverage. This will cover you in case of bar-room brawls resulting from intoxicated customers.
  • Inclusion of employees. The insurance should also include not just customers but also the bar or restaurant's employees.
  • Bodily injury, including mental damages. The policy should include not just bodily damage, but also psychological damage, as well as mental anguish and stress.

Discounts

Your business can avail of discounts if you provide your employees with basic safety training. You can save from 10% to 20% in discounts, especially if you have no claims history.

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