Host Liquor Liability vs. Liquor Liability: What Is the Difference?

Business owners who sell or allow for the consumption of alcohol have additional risks. To ensure adequate protection from costs associated with liability claims against your company, you may need to add a liquor liability insurance policy. But what is the difference between host liquor liability vs liquor liability?

In this review, we discuss the differences between host liquor and liquor liability insurance to help you make informed decisions about which is right for you.

What Is Host Liquor Insurance?

A host liquor insurance policy protects business owners who allow alcohol to be consumed on their property and/or at their events. For instance, a wedding venue that does not directly provide alcohol but allows for it to be consumed at the venue should strongly consider a host liquor insurance policy. This policy can be included in a general liability policy, or it may be an additional coverage to supplement a general liability policy.

This coverage option protects against costs associated with lawsuits and claims of liability. For example, if someone was physically injured by someone who was drunk at your place of business, then they may try to say that you were partially responsible.

This can lead to costs associated with lawyer fees, settlement payments, and other legal costs. In some cases, host liquor insurance also covers medical costs for any injured parties if you are deemed liable for their injury or illness. Property damage is usually included as well, along with other potential policy inclusions.

What Is Liquor Liability Insurance?

Liquor liability insurance protects business owners who sell or serve alcohol. Many business owners who sell or serve alcohol are not eligible for host liquor liability due to higher associated risks. In this case, liquor liability insurance may better fit their needs.

Liquor liability insurance may be included with general liability, although most business owners must purchase a liquor liability policy separately. This coverage is recommended for food and beverage (F&B) businesses that sell alcohol. Sports facilities that sell alcohol during sporting events should also consider a liquor liability insurance policy.

How to Choose Between Host Liquor and Liquor Liability Insurance

Ultimately, the choice between host liquor and liquor liability insurance depends on your business type. As mentioned, host liquor is primarily for business owners who do not sell alcohol but allow for its consumption.

Liquor liability, on the other hand, is for business owners who sell alcohol. More specifically, here are ideal candidates for each type:

• Host liquor liability insurance – venue owners (i.e. wedding venues), sports facilities (i.e. sports stadium), event hosts (i.e. corporate events), and restaurants that allow guests to bring their own alcohol
• Liquor liability insurance – bars, nightclubs, restaurants that sell alcohol, caterers who serve alcohol, food vendors who sell alcohol, and sports venues that sell alcohol

You should consult with an insurance professional who offers liability coverage to determine if host liquor or liquor liability insurance is right for you. Your policy should be personalized according to what best meets the needs for you and your company.

Frequently Asked Questions About Host Liquor and Liquor Liability Coverage

Here are answers to frequently asked questions about host liquor and liquor liability coverage.

What Is Included With a Liquor Liability Policy?

As mentioned, we recommend a personalized policy, so your policy inclusions, deductibles, limits, and premium costs may look different. However, in general, the included coverages for both a host liquor and liquor liability coverage are as follows:

• Legal costs
• Medical costs
• Property damage costs

Whether you choose a host liquor liability or a liquor liability policy, it should cover most costs associated with claims that you were liable for an alcohol-related incident that occurred. For instance, your policy may cover lawyer fees, settlement payments, medical fees related to an injury or illness, and the cost to replace damaged property.

What Is Excluded From a Liquor Liability Policy?

This depends on the type of policy you choose and your provider. A host liquor liability policy is typically more limited than a liquor liability policy. An example of possible policy exclusions include:

• Events that run past 2 A.M.
• Incidents related to the use of pyrotechnics or fireworks
• Raves or rave-like events that carry a higher risk of incidents occurring

You should discuss your liquor liability policy exclusions with your insurance provider when you personalize your policy. You may be able to fill additional coverage needs with a separate policy, or you may receive special coverages with your liquor liability insurance at an additional cost.

Contact Pro Insurance Group to Get Started

Pro Insurance Group offers host liquor and liquor liability insurance policies. If your business allows for the consumption of alcohol and/or sells alcohol, then we strongly recommend a policy to ensure you are adequately protected from costs associated with lawsuits, property damage, and more. So, why wait? Contact us today to get started.