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What is a Liquor Liability Add-On to a Liability Insurance Policy?

February 14, 2024 | General Liability

This article was originally published July 22, 2021

What is a Liquor Liability Coverage Add-On to a Liability Insurance Policy?

To understand liquor liability insurance, you first have to know about liability insurance in general. Liability insurance helps protect businesses from unforeseen lawsuits and similar claims. For example, general liability insurance (sometimes called commercial general liability insurance) can cover the costs of things like:

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    Customer property damage. An example might be that your employee accidentally causes a fire in a building you’re working in, resulting in the need for costly smoke remediation and structure repairs.
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    Non-employee bodily injury. If, for instance, a customer suffers a head injury when something falls on them at your place of business, general liability insurance can cover their medical expenses and also legal costs and damages.
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    Product liability. If products that your business develops or sells injure people or damage property, this coverage can pay legal expenses associated with lawsuits. It can also cover medical expenses if an injury occurs.
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    Libel, slander, and copyright infringement. This coverage can pay for lawsuit expenses from so-called advertising injuries—incidents in which you’re accused of saying negative things about another business in your advertisements or stealing an advertising idea.

The above coverages tend to be standard with general liability insurance. Insurance policies can also have what are known as endorsements, add-ons, or riders. These added provisions modify or enhance the base insurance policy.

So, what is a liquor liability add-on in particular? It can cover liability associated with the selling, serving, or furnishing of alcoholic beverages.

Woman looking at shelves of wine

Who Needs a Liquor Liability Add-On for Their Commercial General Liability Insurance?

Any business that provides alcoholic beverages in one way or another should be protected by liquor liability coverage as an add-on to its commercial general liability insurance or other policy.

What Does Liquor Liability Coverage Include?

Liquor liability coverage includes cover for:

  • Restaurants
  • Liquor stores
  • Bars
  • Convenience stores
  • Breweries
  • Wineries
  • Grocery stores

And the size of the business doesn’t matter. Even a small restaurant or neighborhood grocer can be sued for things like serving minors or providing alcohol to customers who are visibly intoxicated and subsequently get into a car accident. Similarly, a business would need liquor liability insurance for a wedding or other event, even if it’s only a one-off situation. For any event, in order to host, liquor liability coverage is vital.

What Does Small Business Liability Insurance Cost?

Multiple factors go into calculating the cost of small business liability insurance and any add-ons like liquor liability coverage. These include your location, business size, and claims history. However, you can get a fast, free online quote to determine your small business liability insurance cost. 

You can also buy a liability insurance policy and add-ons online. And your coverage goes into effect immediately on the effective date you choose when you make the purchase, with instant access to a Certificate of Insurance (COI).

Other Small Business Insurance Add-Ons

Liquor liability is just one type of liability insurance endorsement. Others include:

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    Contractors installation, tools & equipment. This add-on covers business property, tools, and equipment while at a job site, being transported, temporarily in storage, or during installation.
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    Cyber liability. This endorsement can protect your business in the event of an incident like a data breach regarding sensitive client or employee data. It can also provide coverage for regulatory action defense if a government agency requires you to appear in court.
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    Employment-related practices liability. This added coverage applies to incidences of inappropriate workplace behavior (e.g., harassment, wrongful termination, or discrimination).
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    Employee benefits liability. This endorsement provides coverage in the event of errors or omissions in how you administer your employee benefits program, like failing to add an employee to your medical insurance, which results in the person being denied coverage for a claim later.

Does It Matter Where I Purchase My Liquor Liability Insurance?

Yes, it matters where you get your small business insurance. Liquor liability insurance is critical for businesses that serve or provide alcohol. That said, you want to keep your insurance costs as low as possible while maintaining adequate coverage. 

At biBERK, our direct-to-you approach means there is no middleman or broker involved in the transaction who requires payment for their services. As a result, we’re able to provide insurance for up to 20% less than other insurance companies.

The company that provides your liability insurance policy and add-ons like liquor liability matters, too. biBERK is an organization with a background that gives our customers confidence that we’ll be there for them when they need us. We're part of Warren Buffett's Berkshire Hathaway Insurance Group with millions of satisfied customers, more than 75 years of insurance experience, and $38 billion in paid claims in 2020.

In short, you can trust biBERK for business insurance made simple and affordable!

Do You Need Other Small Business Insurance? biBERK is Here to Help.

In addition to general liability, biBERK offers a wide range of business insurance coverage, including: