Liquor Liability Coverage
Financial Strength and Stability - A.M. Best “A” Rated Carriers
Minimum Liquor Liability Deductible: $500
Programs apply to restaurants, bars and taverns or similar establishments who serve alcohol to patrons for a charge subject to the underwriting requirements below. Coverage is also available for risks selling or serving alcohol in conjunction with other business operations.
Liquor Liability coverage is available on a stand-alone basis or when written in conjunction with the
Commercial General Liability coverage.
Special Event Liquor Liability is available monoline or package when writing Commercial General Liability
coverage for the covered event.
Liquor Liability Applications |
-
Completed and signed applications are required. Prior to quoting, if possible applicant's website to validate information contained on the application. Website information should be documented in the submission.
-
Server training must be in place (Alcohol Awareness Program)
-
Requirements:
-
Liquor license is current and approved by the state.
-
Formal procedures are in place to cut off service to patrons due to excess intoxication and arranging transportation
-
Minimum three (3) years experience
-
Financial stability
-
State "under age” verification procedure in place using ID check (driver license or identification card) of the establishment’s patrons.
-
Determine if the security is provided by employees or an outside firm with their own insurance.
The following submissions must include three (3) years of loss runs or a "no known loss" letter.
-
Any account with any claim over $5,000 or more than one claim
-
Any new establishment with estimated liquor sales of $500,000 or more.
-
Assault or Battery limits higher than $300,000/$300,000
-
Bowling Lanes
-
Casinos
-
Caterers
-
Clubs - Civic, Service, Social
-
Concerts or Festivals
-
Dance Clubs/Nightclubs
-
Fraternal Clubs, Gun Clubs and Lodges
-
Establishments located in states with a liquor liability numerical grade of seven (7) or higher
-
Establishments Catering to clientele less than 30 years of age, including college or university bars
-
Open past 2:00 AM local time
-
That do not provide alcohol awareness training to all server
-
With gaming operations
-
With gross liquor receipts exceeding $1,000,000 except for Package and Grocery Stores
-
With Happy Hour Drink Specials after 9:00 PM
-
With live entertainment, including disc jockeys; or
-
With total establishment capacity of 500 or more
- Promoters or Event Coordinators
Ineligible Exposures:
Establishments allowing customers to serve themselves or others
Known for promoting patron participation in activities such as: Athletic Games, Contact Sports, Drinking Contests, Physical Contests of any kind or Promotional Events or Contests
Known for unruly behavior or disorderly conduct
Offering ”Alcohol Without Liquid ” (AWOL)
AWOL is a process introduced first in Asia and Europe that allows people to take in liquor (distilled spirits) without actually consuming liquid. The machine vaporizes alcohol and mixes it with oxygen, allowing the consumer to breathe in the mixture. The machine has been dubbed AWOL, a play on the military term AWOL. Absent without Official Leave. The AWOL machine produces a very fine alcoholic mist. The continual intake of this mist over a twenty-minute period is the equivalent of taking one shot of distilled spirits.
Open later than the state required closing time
With a suspended or revoked license
With 'Bring Your Own Beer' exposures
With firearms on premises (armed security)
Without formal procedures regulating the sale of alcohol to minors or those under the influence
Drive thru establishments serving open containers
Excess Liquor Liability
Gentlemen's Clubs
Hookah Bars
Oxygen Bars
Pub Crawls
Poker Runs
Raves
Assault or Battery Coverage
Coverage: Available on a sub-limit basis.
Premium: Percentage of the total coverage part premium. The Assault or Battery premium is not subject to a minimum premium and is in addition to the liquor liability minimum premium, if applicable.
Rating:
LIMIT OF INSURANCE |
RATE
(Premium is in addition to the minimum premium) |
$25,000 Each Event / $50,000 Aggregate |
2.5% of total premium |
$50,000 Each Event / $100,000 Aggregate |
5.0% of total premium |
$100,000 Each Event / $100,000 Aggregate |
7.5% of total premium |
$300,000 Each Event / $300,000 Aggregate |
10.0% of total premium |
Coverage: Available on a sub-limit basis. Must be purchased on both the Liquor and General Liability Coverage parts at the same sub-limit for each line of business.
Premium: Must be calculated separately by coverage part and shown on each applicable coverage part supplemental declarations page. The Assault or Battery premium is not subject to a minimum premium and is included in the liquor liability and GL minimum premium, if applicable.
LIMIT OF INSURANCE |
RATE
(% applies separately to GL and Liquor coverage parts and the premium is included in the minimum premium) |
$25,000 Each Event / $50,000 Aggregate |
2.5% of total premium |
$50,000 Each Event / $100,000 Aggregate |
5.0% of total premium |
$100,000 Each Event / $100,000 Aggregate |
7.5% of total premium |
$300,000 Each Event / $300,000 Aggregate |
10.0% of total premium |
Additional Insured
In some situations, the insured may be requested to add an Additional Insured to the Liquor Liability Coverage Form. While this request is not common, underwriters may include certain additional insured interests when required by such designated person or organization.
Additional Insured endorsements, modify the Liquor Liability Coverage form only. Coverage only applies to the sole negligence of the insured, and only for ongoing operations performed by them. Coverage for the two interests shown below is included for no additional premium charge.
- Owners of premises owned, rented or occupied by you
- Municipality or governmental agency for the issue of permits only
Contact us for more information. |