If your business is one that sells, serves, manufactures, or oversees the sales of alcohol, then your business needs a commercial liquor liability policy. What this type of insurance does, is it protects your business from damages or loss as a result of liquor. Most often, claims involve damages as a result of an intoxicated person, such as a lawsuit filed by someone involved in a crash caused by someone who was drunk. Businesses often lack adequate liquor liability coverage and this can expose the business to very high liability, which a general liability policy will not cover.
If an establishment or venue is selling or serving liquor illegally almost all liquor liability policies have exclusions that will not cover those claims if one were to occur. Even places that host events like weddings should have liquor liability coverage as the host could become liable for the actions of someone who becomes drunk.
Rates on liquor liability policies vary and they depend on what type of business it is, the location and the record of the business, meaning how many claims have they seen in the past due to alcohol related incidents. It is good practice for a business to lay down procedures that prevent alcohol related claims such as knowing when to cut off patrons and if the venue calls for it, having appropriate security.
Non-profits that have events with their one day liquor bonds will need liquor liability coverage if they are charging for the alcohol. Be sure to contact your friends at Ieuter Insurance Group to see if you need the coverage.