What’s the Difference Between Liquor Liability Policies?

Many organizations today host company-wide parties, celebrating everything from anniversaries to product releases. Food and libations are often served during such events, meaning organizations much ensure that their liability coverage protects them if someone gets hurt or property is damaged due to alcohol consumption. Organizations want to know what’s the difference between host liquor liability and liquor liability?

What’s the Difference?

The difference between the two coverages is pretty straightforward if you do a little research and ask a few questions. It all boils down to whether you are serving alcohol as part of an event or if you are in the business of serving alcohol to customers, among other things.
If a company is hosting a party for employees, customers, prospects or others, they are typically covered by host liquor liability, which is typically found under the organization’s general liability policy. This protects the company from damage or injury caused by an intoxicated guest.
Businesses that manufacture, distribute, sell or serve alcohol are protected from bodily injury and property damage claims through liquor legal liability coverage. It is not tied to a general liability policy.
One way a company can limit its liability when it wants to celebrate is to hire a caterer protected by a liquor legal liability policy – best if the coverage is $1 million minimum – and a liquor license. If you’re still not clear about the difference between host liquor liability and liquor liability, the experts at U.S. Risk can help answer your questions.