Should You Get Host Liquor Liability Insurance?

In many states, business owners who do not serve or sell alcohol but allow its consumption on-site are held liable for intoxicated guests’ damage. Host liquor liability insurance┬ácovers expenses related to alcohol-related lawsuits.

Corporate Social Events

When a business hosts private functions like picnics, luncheons, parties or corporate events, this short-term coverage safeguards it from possible liability issues related to the guests’ alcohol intake. It protects the event holder against property damage or bodily injury claims resulting from an intoxicated partygoer.

These policies only apply if there is no transfer of funds for the alcohol consumed.

Alcohol for Profit

Host liquor liability insurance does not provide coverage for companies that sell, manufacture, or serve alcohol as part of their business operations. Businesses that earn revenue from these sales need to purchase liquor liability insurance.

Operations such as restaurants, bars, liquor stores and breweries benefit from liquor liability policies and are often legally required to obtain coverage before getting a liquor license.

Whenever a person becomes inebriated at a business-hosted event, there is a possibility for alcohol-related incidents, such as falls, fights or property damage. Company owners are liable for accidents resulting from guests who drink alcohol on-premises. Host liquor liability insurance protects an organization from possible lawsuits stemming from these types of mishaps.