Liquor Liability Insurance
The current liability policy contains a liquor liability exclusion that eliminates coverage for insureds if liability is imposed in any of three ways: due to any insured’s causing or contributing to the intoxication of any person; because of the furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or due to the violation of any statute, ordinance, or regulation relating to the sale, gift, distribution, or use of alcoholic beverages. This exclusion applies only if the named insured is in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages.

Any business that has a connection to the alcoholic beverages industry has a need for specialized coverage for liquor-related incidents and provides coverage for liquor liability imposed on an insured for incidents arising out of the sale, furnishing, or serving of any alcoholic beverage. The liquor liability policy picks up coverage excluded by the commercial general liability policy; that policy specifically eliminates coverage for incidents arising out of the sale, service, or furnishing of alcoholic beverages.

And of course, liquor liability insurance is not a substitute for other liability insurance. An insured in the liquor business also needs all the other liability coverage necessary to businesses generally, such as, premises and operations liability coverage and products liability insurance.