What is Liquor Liability Insurance?
The serving and/or selling of alcohol exposes businesses to certain risks, for a business might be held financially liable for incidents involving inebriated guests or customers. Liquor liability insurance may help protect Massachusetts businesses from a range of risks that come with serving alcohol.
Liquor liability insurance is specialized commercial liability insurance for businesses that provide alcoholic beverages. Like most liability insurance policies, liquor liability normally covers attorney fees, court fees, settlements and judgments associated with covered claims.
What Massachusetts Businesses Should Carry Liquor Liability Coverage?
Most businesses that regularly serve and/or sell alcohol are required to obtain a liquor license from Massachusetts’ Alcoholic Beverages Control Commission, and obtaining a license generally requires liquor liability coverage. Thus, most restaurants, bars, pubs, nightclubs, wineries, breweries, caterers and food trucks that offer adult beverages as part of a standard menu likely need liquor liability coverage.
Businesses that only serve alcohol at special events usually also can benefit from the protections that liquor liability coverage offers. Even if alcohol isn’t actually sold at a company party or nonprofit fundraiser, the sponsoring organization might still be held responsible if alcohol is served and something happens. A short-term liquor liability policy that’s in effect only during an event’s dates can often be purchased for these sorts of situations.
In some cases, whether liquor liability coverage is needed isn’t immediately clear. Businesses that are unsure whether they need this type of insurance can talk with an insurance agent who knows these policies well. A knowledgeable agent will be able to make an informed recommendation about coverage after reviewing a business’ particular situation.