Liquor Liability Insurance

                   Protection served up just for you. 

Why You Need Liquor Liability Insurance

Liquor Liability Insurance is essential to your business, it protects your business(s) that manufactures, serves, or sells alcohol. It provides coverage to protect you and your business(s) from an intoxicated person, who was served or sold liquor by your business. Every business that sells alcohol, regardless of size, is exposed to a liquor liability claim and should procure this type of insurance for their business protection. Businesses may be legally required to purchase liquor liability insurance to obtain a liquor license or a commercial lease.

Liquor liability coverage can be added to a commercial liability policy or purchased as a standalone policy.  If you wish to not purchase this extra coverage, your commercial general liability policy does not protect your business in the event you have a liquor claim brought against you. 

What Does Liquor Liability Insurance Cover

If your business sells or serves alcohol to a visibly intoxicated person who causes injury or damages, liquor liability insurance can pay for legal fees, settlements, and medical costs.  Make sure your policy includes assault and battery coverage.  This coverage provides protection against claims brought on by you or your staff – something that can easily arise if your escorting a drunk patron off the premises.

Why Do I Need Liability Insurance

It’s important to have a liability risk management in place for protection of your business and safety measures for you, your staff, and patrons.  Bars, taverns, restaurants, and nightclubs face unusual risks, and the risks are high.  It covers any injuries, illnesses or liabilities that occur on your property. It also protects your personal assets if you are sued. If you own or work at one of these establishments, understand your risk and the risk management insurance you need. This could help reduce the chances that your business will be sued, but it can never eliminate the risk entirely. Liability insurance pays the cost of your defense and protects your assets.



Ways to Decrease Your Risks

To reduce your risks, protect your staff and patrons, and potentially lower your insurance premiums, follow a few steps.

Enroll managers, servers, door hosts, bouncers, and all employees in regular training courses this will help them learn techniques that reduce risks. Potential trainings address legal responsibilities when serving alcohol, how to recognize and prevent intoxication and food safety.

  1. Hire experienced staff. Experienced staff are less likely to engage in risky behavior and some insurance companies give lower rates to establishments with staff who have over three years of experience.
  2. Card everyone. This will ensure you don’t serve any minors and provide protection for your establishment.
  3.  Limit free drink giveaways so you don’t encourage intoxication.
  4.  Establish protocols for handling inebriated guests. Your employees should know to call a cab or take other protocols if someone has had too much to drink.
  5. Be vigilant about reducing risks. Keep the floor clean, follow safe food guidelines, make repairs right away, ensure there’s adequate outdoor lighting and take other steps to reduce risks around your establishment.

When you understand risk management for bars, taverns, restaurants, and nightclubs you can take the necessary steps to protect your employees and patrons. For more information on managing and reducing your risks contact Lancaster Insurance Center.

Common Types of Risks

While every business is slightly different, there are common risks bars, taverns, restaurants, and nightclubs face. They include:

  • Liability if guests or employees fall, slip, or are injured
  • Liquor Liability if a guest drinks too much and causes an accident or other liability
  • Food Contamination
  • Fire Hazards
  • Increased Pollution Liability Regulations
  • Theft
  • Assault and Battery

How to Purchase Risk Management for Bars, Taverns, Restaurants and Nightclubs

 Contact Lancaster Insurance Center on purchasing insurance for your establishment. Qualified businesses include:

  •  Neighborhood bars, pubs, and taverns
  • Restaurants with high-percentage alcohol sales
  • Craft brewpubs
  • Sports bars
  • Nightclubs and discotheques
  • Wine bars
  • Cocktail lounges
  • Comedy clubs
  • Fraternal Organizations

 To ensure you receive adequate coverage for your needs, discuss details about your specific establishment with Lancaster Insurance Center. Factors like how long your employees have worked in the industry and the types of guests you serve can affect the type of insurance you purchase and your insurance premiums.



Allow Lancaster Insurance Center to help you choose a policy that will fit your business needs.  Our goal is to help you protect what matters most by protecting your assets, whether business, personal, or both.  A well-chosen policy can lessen the impact of some of life’s most common, yet unforeseen perils.


Contact Lancaster Insurance Center today for a quote!