2 Types of Insurance to Protect Alcohol-Related Businesses

Businesses that manufacture, sell or serve alcoholic beverages face unusual and specific risks. Establishments that provide or allow alcohol have two primary insurance choices for financial safeguards: liquor liability and host liquor liability policies.

Liquor liability and host liquor liability insurance include the following provisions:

1. Liquor Liability Insurance

Liquor liability insurance is designed to protect business entities from the costs associated with property damage or injury caused by alcohol abuse. This policy is structured for businesses such as:

  • Restaurants
  • Bars
  • Taverns
  • Breweries
  • Retail Shops

2. Host Liquor Liability Insurance

Host liquor liability provides coverage for medical expenses, property damage and legal costs if an intoxicated guest causes an incident. This type of insurance is appropriate for enterprises that do not serve or sell alcohol but allow alcoholic beverages to be consumed on the premises. Businesses that may benefit from host liability protection include:

  • Businesses that host social events where alcohol is permitted
  • Venues where alcohol is allowed
  • Bottle clubs or restaurants that do not serve alcohol, but patrons may bring their own liquor to the property

Events caused by alcohol offenses are responsible for billions of dollars in property damage and injuries each year. Specialized insurance experts offer liquor liability and host liquor liability programs that provide tailored financial security and risk management for the unique challenges facing alcohol-related businesses.