Host Liquor Liability Coverage for Business Events

Need for Liquor Liability Coverage

A Commercial General Liability (CGL) policy contains language that excludes liquor liability coverage if your company or organization manufactures, distributes, sells, serves, or furnishes alcoholic beverages. However, suppose your business doesn’t involve alcoholic beverages. In that case, a CGL policy provides Host Liquor Liability coverage for an organization or person for specific events or functions that are incidental to the named insured’s business.

Suppose a guest or employee at a company-sponsored event overindulges and injures others (non-employees) due to their intoxication. In that case, an unendorsed CGL will protect the insured from claims made by persons injured by the over-served employee or guest.

Keep in mind that selling liquor by the drink or charging admission to an event can create a situation where coverage is excluded under a CGL, which would require separate coverage for your protection.

A landlord who has a tenant whose business involves alcoholic beverages needs to be sure that they are protected. In some states, the landlord can be liable for the tenant’s actions. While naming a landlord on a CGL as indemnification is often part of a commercial lease, a CGL will not provide liquor liability protection for a landlord due to the exclusion. The landlord would want to be named on a liquor liability policy.

Does Hiring a Bartender Eliminate Liability?

Hiring a professional bartender trained to recognize and handle circumstances of intoxication can reduce your risk. It does not, however, necessarily absolve you of all potential liability, and lawyers tend to sue all possible parties if an incident occurs. Having a bartender at least establishes someone else as being primarily responsible.  It may also help defend a claim and potentially reduce damages you might have to pay. Before an event, be sure to obtain a Certificate of Insurance from the bartender to be sure that he/she has adequate liquor liability coverage.

Certain events may result in other types of increased liability, depending on the circumstances. Our Murphy Insurance professionals can help you determine if you need to purchase special coverage and identify ways to reduce potential lawsuits. You may also want to discuss concerns with your legal counsel. Some businesses find it easiest and safest to prohibit drinking during business hours, including business lunches, dinners, and other company events. Please Contact Us to discuss your business liability needs.

Other articles:

8 Ways to Limit Alcohol Liability at Meetings and Events

How to Create a Drug and Alcohol Policy