Liquor Liability Insurance in Texas
Also providing insurance to residents in Colorado, Kansas, New Mexico, and Oklahoma
What is liquor liability insurance?
Businesses that sell alcohol may be exposed to potential lawsuits if an intoxicated customer is injured or causes harm. Liquor liability insurance may help Texas businesses protect themselves from this risk.
Liquor liability insurance is specialized protection for businesses that sell or serve alcohol. If a business allegedly overserves, coverage may help pay attorney fees, court fees, and a settlement.
Which businesses in Texas need to have liquor liability coverage?
Liquor liability coverage is something that almost any business selling alcohol in Texas should consider. Bars, restaurants, retailers, breweries, distilleries, clubs, and others may want it.
Although Texas is one of the few states that generally doesn’t require coverage in order to obtain a liquor license, it’s strongly recommended when selling adult beverages. Not getting coverage could be financially bankrupting if something happened involving an intoxicated customer.
An example of a fight between two intoxicated customers shows just how much an incident could be. Either person directly involved in the fight might sue, alleging that their judgment was impaired because the business overserved them. Anyone nearby might sue for physical injury or emotional harm. It’s possible that even someone not in the bar could sue, if the fight went outside and the person’s vehicle was damaged.
Depending on a policy’s terms, liquor liability might offer protection against various lawsuits like these.
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What sorts of incidents does liquor liability protect against?
While the exactly what a policy covers can vary, policies might protect against incidents such as the following:
For specific coverage details, businesses should review potential policies with an insurance agent who specializes in liquor liability.
Are intoxicated customers’ injuries covered by general liability insurance?
Typically, general liability insurance covers customer injuries from common “slip and fall” accidents. However, general liability frequently excludes these injuries if the customer is intoxicated when hurt. For common injuries of intoxicated customers, businesses usually need liquor liability.
Do nonprofit organizations need liquor liability when hosting events?
Both nonprofits and companies should consider getting liquor liability for any events where adult beverages will be served. Much like a business that sells alcohol, a nonprofit organization could be sued if they sell drinks or offer them complimentary.
In these situations, affordable liquor liability coverage is often available within an event policy. This can keep premiums lower by providing coverage just for the days of an event.
Does liquor liability cover incidents involving underage drinking?
Having insurance isn’t a substitute for responsibly checking customers’ IDs to confirm their ages. Liquor liability frequently doesn’t cover incidents wherein a business negligently or knowingly served alcohol to someone who’s underage.
What expenses does liquor liability help pay?
Like other liability coverages, liquor liability will usually help cover attorney fees, court fees, and a settlement or judgment arising from covered claims. Payment is typically subject to any deductible and limit that are applicable.
How much do businesses pay for liquor liability coverage?
The cost of liquor liability insurance varies based on factors such as a business’s annual revenue, its percentage of sales from alcohol, and the type of beverages sold. Any recent liability claims will likely increase rates, and there are still many other details insurance companies consider.
To find out how much overage will cost in a specific situation, businesses can work with an independent insurance agent. An independent agent will be able to check liquor liability quotes from several companies, looking at both rates and protections.
Where can businesses in Texas get liquor liability insurance?
For help with finding liquor liability insurance in Texas, reach out to the independent insurance agents at Kirk Insurance Agency. Our team will make sure you find a policy that gives robust protection.
