From Christmas parties, barbecues to seminars, alcohol is often a large part of these social gatherings. When a person drinks too much, drives a car and has an accident, who is at fault? Well, you know the drunk driver is; but what about the person, organization or business that furnished the alcohol? Does your insurance policy cover these gathering for your business in case there is a liquor liability claim?
You might want to see if you have “Host Liquor Liability” on your General Liability insurance policy. The majority of the insurance policies do give this coverage which means “If you are not in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages you would have the coverage. The key word is in the “business”. Restaurant and bars in the “business,” must purchase a Legal Liquor Liability policy. If you are not in the “business” your General Liability policy should pick up the exposure. You should talk to your Insurance Agent to confirm that this coverage is included in your policy.
Some insurers may exclude liquor liability if the insured serves or furnishes alcohol for a charge or if a license is required. If this is on your policy you would then need to buy a separate Legal Liquor Liability policy.
Maryland and Delaware are two of the eight states that do not have a Dram Shop law. A Dram Shop law makes the entity or individual statutorily liable. If the state does not have a Dram Shop law, liability will be determined by the courts therefore in these two states your general liability policy should pick it up.
If you need more information on Host Liquor Liability please give me a call or e-mail me.