What does Liquor Liability Insurance Cover? 

 August 19, 2013

By  LMW Attorneys

Establishments that provide alcoholic beverages as part of their regular operations generally should have some sort of liquor liability coverage that protects them in the case of a variety of damages caused by the consumption of alcohol. These damages involve a variety of different scenarios, and causes, and they also include certain notable exclusions.

Many establishments in the United States that serve alcohol carry liquor liability insurance because it is required of such establishments in most states. It is important that those involved in a personal injury case resulting from a situation involving the consumption of alcohol understand what exactly is covered by a liquor liability insurance policy.

One of the most common scenarios resulting in a liquor liability claim is in the case of damages suffered due to a fight, or altercation, between intoxicated individuals.

Liquor liability insurance might also cover the damages of a drunk driving accident if the drunk driver causing the accident became intoxicated at a particular establishment, or through alcohol bought at a certain liquor store.

Liquor liability claims could cover an establishment that sold alcohol to an individual who proceeded to injure him or herself due to intoxication. The coverage provided by liquor liability insurance may vary with a given policy or depending on the exact nature of the business that purchases the policy.

There are many cases involving injury, or damages, that have in some way resulted from alcohol where damages are not necessarily covered by liquor liability insurance.

If an establishment violates certain rules, its liquor liability insurance may not cover the associated losses. For example, if the establishment contributes to the intoxication of the person, or provides alcoholic beverages to a person who is already visibly drunk, liquor liability insurance may not cover the resulting losses.

Also, if the establishment serves alcohol to an underage individual, liquor liability insurance will not cover the damages.

It is of further note that liquor liability insurance only covers losses due to intoxication, not due to general hazards associated with the basic consumption of a beverage. For example, if an individual becomes ill due to food poisoning in an alcoholic beverage, liquor liability insurance will not cover the damages.

Because liquor liability insurance can cover damages in the case of many types of accidents associated with alcohol consumption, it is important to understand what this form of insurance does and doesn’t cover.