BROCHURE: UNDERSTANDING THE LIQUOR LIABILITY COVERAGE FORM (OCCURRENCE BASIS)

(November 2022)

The Commercial General Liability Coverage Form specifically excludes liquor related losses if your business sells, manufactures, distributes, serves, or furnishes liquor. In addition, many insurance companies exclude liquor coverage by endorsement for any operation that regularly serves liquor on or off premises, even though they are not considered “in the business.” If your business has a liquor exposure and your Commercial General Liability Coverage Form excludes liquor liability, Liquor Liability Coverage is a must!

Consult the policy for definitions and limitations. The terms of this brochure do not represent contract terms. The policy is subject to company underwriting practices.

WHAT IS COVERED

The company agrees to defend you and pay sums that you are legally obligated to pay because of bodily injury and property damage caused by a person to whom you sold, distributed or furnished alcoholic beverages.

WHAT IS NOT COVERED

Every insurance coverage form or policy has certain exclusions and limitations. This is because only specific types of businesses may need a given coverage or the risk or exposure to loss is not considered insurable for various reasons. Some of the more common exclusions are:

• Expected or Intended Injury
• Workers Compensation and Similar Laws
• Employers’ Liability
• Liquor License Not in Effect
• Your Product
• Other Insurance
• War

Always review the coverage form carefully for other limitations and details of the exclusions.

CONDITIONS

The policy contains a conditions section that explains the obligations you owe to the insurance company and also the obligations the insurance company owes to you when a loss occurs. Some of the common conditions are:

• Bankruptcy
• Duties in the Event of Injury, Claim, or Suit
• Legal Action Against Us
• Other Insurance
• Premium Audit
• Representations
• Separation of Insureds
• Transfer of Rights of Recovery Against Others to Us
• When We Do Not Renew

DEFINITIONS

Refer to the coverage form for a list and description of definitions.

ENDORSEMENTS

The Liquor Liability Coverage Form provides fairly narrow coverage. For this reason, the number and type of endorsements available to modify or adjust it are very limited.

Note to subscribers:

Related Article: Liquor Liability Coverage Forms Endorsements Checklist

REPRINT PERMISSION

PF&M subscribers in any manual or electronic form are permitted to reprint any portion of this brochure for their commercial insurance customers. Other uses require permission from The Rough Notes Company, Inc.