Liquor Liability for Concessionaires

Dram shop laws exist in most states and create legal liability for businesses that sell alcohol to intoxicated individuals who then harm themselves or others. As a vendor selling alcohol at an event, you can be held legally responsible if you serve a customer who was visibly intoxicated and that customer later causes a car accident or injures someone. Dram shop liability claims can result in significant damages — liquor liability insurance protects your business against these exposures.

Assault and battery coverage is an important component of liquor liability policies. Alcohol consumption at events can lead to altercations, and businesses in the vicinity of alcohol service can face claims even when the vendor isn't the direct cause. Some standard GL policies exclude assault and battery claims entirely. Liquor liability policies typically include A&B coverage as part of the standard program.

Beer and wine festivals have become major events across the country, and vendors at these events face concentrated liquor liability exposure. When thousands of attendees are consuming alcohol and you're one of dozens of serving vendors, any incident can generate claims against all nearby vendors. Having adequate liquor liability coverage — with appropriate limits — is essential for participating in these events.

The interaction between your liquor license and your insurance is important. Most temporary alcohol permits and event liquor licenses require proof of liquor liability insurance as part of the application. Coverage must be in place before the license is granted. We coordinate timing with applicants to make sure the policy is bound and the certificate is available when you need it for your permit application.

Liquor liability limits should be calibrated to your event size and exposure. A vendor serving beer at a small community fair has different exposure than a festival bar vendor serving a crowd of 10,000. We'll discuss your typical event size and selling volume to recommend appropriate limits. Most events require at least $1 million in liquor liability coverage.