liquor insurance

What is Liquor Liability Insurance? – 3 Best in Canada

A lot of things can go wrong when alcohol is involved. Fights, accidents, drunk driving – these are all things that are common with alcohol usage. But did you know that if you are the one serving the alcohol, you can be held liable and sued? Yes.

If you serve alcohol to someone who then damages property or hurts another person, you are the one who could be held liable! That’s why it’s essential to protect yourself with Liquor Liability Insurance.

What is Liquor Liability Insurance and what does it cover?

If you sell, serve, or distribute alcohol, you could be held liable if an intoxicated person claims bodily image or property damage after you have served them.

Liquor liability insurance can protect you and your business if you are ever sued. This type of insurance helps to cover things like settlements, legal costs, property damage repair costs, medical bills, and so forth. 

Liquor Liability insurance can help to cover you and your business in cases of assault and battery (if someone you serve hurts another person), drunk driving (if someone you served is in an accident related to driving intoxicated), and property damage (if someone you served alcohol to causes damage to another person’s belongings while intoxicated). 

What isn’t covered by Liquor Liability Insurance?

While liquor liability does cover lots of things, it’s also important to know what it does not cover. Liquor liability does not cover incidents of slander related to alcohol intoxication, nor does it cover incidents related to underage drinking.

Even if you have liability insurance, you and your employees are still responsible for ensuring that ID is checked and that alcohol is not being served to underage patrons. Your employees should be trained in what to look for in a fake ID to ensure that related incidents do not happen. Unfortunately, no form of insurance covers underage drinking. 

And finally, liquor liability insurance does not cover incidents related to damage to your own property. If an intoxicated person damages something on your business property, this becomes your own responsibility. With that being said, commercial liability insurance coverage can protect you in cases of damage to your property. 

Who can be held liable?

When it comes to serving alcohol, multiple people can be held liable if something goes wrong:

  1. Servers. Servers, including restaurants and bars, are responsible for who they serve alcohol to. It is the legal responsibility of a server to do their diligence to make sure that someone is of the legal drinking age before they serve them an alcoholic beverage. Furthermore, servers are responsible for limiting alcohol intake. They can be held responsible if they serve alcohol to someone who is past the point of intoxication.
  2. Occupiers. People, companies, and organizations are responsible for ensuring the safety of those who enter their premises. It is the responsibility of the people who own a company or organization to ensure that all staff members are trained in proper alcohol serving procedures. If anything goes wrong after someone has been served alcohol improperly on the premises, the organization, company, and people behind it can be held liable. 
  3. Employers. Serving alcohol at a restaurant, bar, or another outlet is not the only time you need to be concerned about liability. Many times, employers host parties or events for their staff. In such a case, they are responsible for the protection and safety of their staff members. Employers can be held liable if someone causes damage or harm while intoxicated after an event or party. 

Who needs Liquor Liability Insurance?

Generally speaking, anyone who sells or distributes alcohol should have liquor liability insurance. This includes companies that sell alcohol daily, such as bars, clubs, restaurants, or grocery stores. Taverns, caterers, breweries, and liquor stores should also have liability insurance. 

But liquor liability insurance isn’t just for larger companies who sell alcohol regularly. It’s also important to purchase this type of coverage for single-day events. If you are throwing a party, work-related event, or even a wedding, you should protect yourself with liability insurance. 

How much does Liquor Liability Insurance Cost?

The cost of Liquor Liability Insurance can vary greatly depending on numerous factors. The size of the business is an important factor in determining cost. If you are a large restaurant that serves alcohol regularly, you’re going to pay for more than a one-time wedding event.

Liability insurance costs can also differ depending on your claims history, as well as your location. Liability insurance tends to cost more in high-crime areas where alcohol is regularly an issue. 

3 Best Liquor Liability Insurances in Canada

  1. PAL Insurance Brokers of Canada

PAL Insurance Brokers offer a variety of different options for liquor liability insurance. Not only do they offer “liquor liability only” insurance, but they also offer insurance for special events, parties, and weddings.

In addition, PAL offers liability insurance specifically for performers, servers, and caterers in special events. They serve all provinces and offer a max coverage of $5 million. 

Note: PAL Insurance Brokers is best suited for those looking for insurance for single-day functions. 

  1. Burns and Wilcox Canada

Burns and Wilcox Canada offers liquor insurance to all of Canada. Not only do they offer liquor liability insurance, but they also offer business interruption insurance, commercial general liability insurance, and equipment breakdown insurance.

This company covers single-day events and is also designed for restaurants, bars, taverns, motels, and other commercial businesses. 

  1. Mitchell and Whale Insurance Brokers

Mitchell and Whale Insurance Brokers operate out of Ontario, Canada. They provide liquor liability insurance for bars, breweries, pubs, restaurants, clubs, wineries, and other companies providing bar services. They also cover one-day events such as beer tents and special occasions. 

 They offer no-obligation quotes to all those interested. 

In conclusion, if you operate a business or are hosting an event that will be serving alcohol, liquor liability insurance should be of top priority.

Liquor liability insurance can help protect both you and your business if an incident should occur that is related to alcohol intoxication. 

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