For the Food Service Industry,(including restaurants, caterers, wholesalers, retailers), liquor liability is not an optional endorsement.  Any business which manufactures, sells, serves, or facilitates the uses or purchase of alcohol should consider liquor liability a necessity.  

* Standard General Liability Policy Does Not Protect Your Business Against Alcohol Related Claims* 

According to Gregory Boop of About.com only 35% of businesses that should have Liquor Liability actually carry the coverage.  

There are two main reasons for this vast number of unprotected establishments: 

1. Price, Liquor Liability can be expensive depending on type of business and geographical area.
2. Very common misconceptions within the food services industry as to the liability exposures occurring from alcohol related incidents.

Here is a List of the very Important coverages that are often excluded on standard Liquor Liability policies that you will need to discuss adding with your insurance professional: 

• A large number of Liquor Liability claims involve fights.  A policy that doesn’t not include Assault and Battery coverage would be next to useless.
• Some standard policy will not include defense costs.  This coverage is a must.  Make sure any Liquor Liability policy you purchase carries defense costs included.
• Employees are often excluded on standard Liquor Liability policies.  Don’t be naive and pretend your employees do not takes drinks on the job.  Make sure that your Employees are included on the policy.
• Mental damages such as stress and mental anguish are often excluded on standard policies.  These types of claims can be large and litigation can last a long time.  Make sure that Mental Damages is covered on your Liquor Liability policy.

There are ways to reduce your Liquor Liability premiums.  First and most crucial having a clean loss history.  However, employee training (such as the T.I.P.S. program) and safety programs can have up to a 20% premium discount depending on the carrier. 

And as I’m sure your already aware, DON’T SERVE MINORS, because there is NOT an insurance policy that will cover you if you are found serving minors. 

“If you’d like to talk about your Insurance Risk, contact me today. We can talk about your exposure, and begin our relationship!”  

Thank you,  

Ryan H.  

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