What is Liability for Alcoholic Beverages?
Liability for alcoholic beverages is a type of insurance that covers companies in the event that claims related to alcoholic beverages are made against the company. More classically, such actions involve damages resulting from the actions of an intoxicated person, such as a lawsuit brought by someone involved in an accident caused by someone who was intoxicated. While the damages in such actions can be substantial, companies often do not have adequate alcohol liability coverage, and this can expose them to very high liabilities.
Most nations have laws that state that companies that manufacture, sell or serve alcohol can be held liable for the actions of drunk customers. For example, if someone gets drunk in a bar and is involved in a car accident, the bar is responsible for the drunk's activity and the bar may be forced to pay very high liability damages. People are responsible for injuries their clients inflict on themselves when intoxicated, such as someone intoxicated falling down a flight of stairs, and for accidents determined to be the fault of someone who was drunk.
Liability insurance for alcoholic beverages provides coverage for establishments involved in the alcoholic beverage business. Insurance terms may vary and may be attached to a general passenger liability policy or purchased as a separate policy. Business owners should note that alcohol liability is often specifically excluded from general liability policies and that the language of an alcohol liability policy may vary.
These policies generally exclude situations where alcohol was illegally sold or served, such as in the case of an accident caused by an underage drunk driver. They may also exclude mental injury and psychological distress from the types of claims they cover or exclude employees from the policy. Alcohol liability policies may also come with limits that limit the overall payments the insurer will make.
Fees for this insurance are based on the type of business, location and business registration. A company that has been cited for serving or selling alcohol illegally will generally have a harder time getting coverage, as will companies that have a history of complaints involving intoxicated customers. On the other hand, a company with an excellent track record can negotiate cheaper rates.
While many people may think that alcohol liability does not apply to them unless they own a business such as a liquor store, tavern, bar or restaurant, there are circumstances where people outside the liquor business need liability coverage. responsibility. For example, a wedding where alcohol is served could create a situation where the host would be responsible for the actions of someone who gets drunk. Some places have liability policies that cover private events, and in other cases you need to buy what's known as a liquor policy, a type of policy tailored to someone who doesn't sell, produce or serve wine. but who needs liability coverage.