top of page
  • nickschrader100

What Does Liquor Liability Cover For Small Businesses?

If your company manufactures, sells, distributes, or serves alcohol to consumers, you must obtain liquor liability insurance. Because your general liability policy will likely exclude alcohol-related liabilities, you may require liquor liability and other coverage.

Acquiring this coverage may also be a prerequisite for obtaining a liquor license or a business lease. Even though it isn't necessary, small company owners may obtain it to protect themselves against the behavior of intoxicated customers.

What is Liquor Liability Insurance?

Liquor liability insurance may protect small firms that make, sell, or serve alcoholic beverages.

This sort of insurance often covers physical injury or property damage claims brought against your business due to the conduct of drunk individuals to whom you provided alcohol.

Who Needs Liquor Liability Insurance?

Any business selling or serving alcohol regularly should consider purchasing liquor liability insurance.

Generally, these businesses may include:

  • Caterers

  • Liquor shops

  • Taverns and bars

  • Restaurants

  • Wineries and breweries

  • Supermarkets

What Does Liquor Liability Insurance Cover?

Liquor liability insurance normally covers any personal harm or property damage caused by an intoxicated individual to whom your business sold alcohol, even after they leave your premises.

More precisely, this might involve scenarios like:

  1. When an intoxicated individual causes harm to someone else's property.

  2. When a drunk individual gets into a brawl or other physical incident, and someone sues.

  3. When a drunk individual abuses or harasses someone.

  4. When a drunken individual injures oneself and sues.

  5. When an intoxicated customer leaves your establishment, drives a car, and causes an accident.

If your company is sued, liquor liability insurance might help in paying for your:

  • Legal fees

  • Settlements or verdicts

  • Property damage repair expenses

  • Medical expenses for injury treatment

Which Are Not Covered by Liability Insurance?

Although liability insurance may assist you in paying for certain circumstances, there are other cases they don't cover. This includes:

  • Underage drinking allegation

  • Damage to business property

  • Other sorts of harm like libel and slander

  • Sickness or disease caused by a manufacturing


Small companies are not immune from liability for drunk clients who have been overconsuming alcohol. And, because small businesses are more vulnerable, they should obtain liquor liability insurance to ensure adequate protection.

At Second Western Insurance Services, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (818) 952-5203. Get your free quote today by CLICKING HERE. Any coverage discussed is not guaranteed. Please contact us today to go over your policy to ensure your needs are met! We are here and happy to help.


Recent Posts

See All
bottom of page