General Liability vs. Liquor Liability: What’s the Difference?
What Is the Difference Between General Liability and Liquor Liability?
The main difference is the type of claim involved and whether the allegation is tied to the business’s sale, service, or furnishing of alcohol.
Everyday Premises and Operations Claims
General Liability may respond to certain third-party bodily injury or property damage claims arising from the restaurant’s premises or normal business operations.
Claims Connected to Serving Alcohol
Liquor Liability may address certain claims alleging that the business caused or contributed to injury or damage through the sale, service, or furnishing of alcoholic beverages.
Why Should Alcohol-Serving Businesses Review Liquor Liability Separately?
Alcohol service can create exposures that are different from ordinary food service or premises liability. The amount of alcohol sold, hours of operation, entertainment, security, and type of establishment may all affect underwriting.
Insurers may consider how much of the business’s total revenue comes from beer, wine, liquor, or other alcoholic beverages.
Late-night operations, live music, dancing, DJs, special events, and other entertainment can affect the exposure.
Bouncers, security personnel, capacity, entrances, exits, parking areas, and procedures for handling intoxicated or disruptive patrons may be important underwriting factors.
Businesses may use responsible alcohol-service training, age-verification procedures, drink-monitoring practices, and other controls to reduce risk.
What Should a Restaurant, Bar, or Tavern Review?
Businesses that sell or serve alcohol should review both their General Liability and Liquor Liability protection instead of assuming one policy addresses every claim.
Review beer, wine, and liquor sales, table service, bar service, takeout where permitted, catered events, and other alcohol-related operations.
Compare General Liability and Liquor Liability limits with lease requirements, contracts, business size, alcohol exposure, and potential claim severity.
Review assault or battery provisions, liquor-related exclusions, security restrictions, entertainment conditions, and other important policy terms.
Maintain applicable alcohol licenses and review employee training, age verification, incident documentation, and other procedures appropriate to the operation.
Does Your Insurance Address the Alcohol You Sell or Serve?
Best Formula Insurance can help restaurants, bars, taverns, lounges, and other hospitality businesses review General Liability, Liquor Liability, property coverage, Workers’ Compensation, excess liability, and other insurance needs.