Liquor Liability Insurance in Pennsylvania

Also providing liquor liability insurance Pennsylvania to residents in Maryland, North Carolina, New Jersey, and Virginia.

Anthony Acri Insurance

What is liquor liability insurance?

Serving or selling alcohol presents specific risks, as businesses might be held financially liable if there’s an incident involving an overly intoxicated customer. Liquor liability insurance may help Pennsylvania businesses selling alcohol protect themselves from such lawsuits.

Liquor liability insurance is a specialized liability coverage for businesses that sell alcohol. Policies typically cover attorney fees, court fees, and settlements if there’s a covered claim.

What businesses in Pennsylvania need liquor liability coverage?

The Pennsylvania Liquor Control Board generally requires that any business selling alcohol in the state has liquor liability coverage. This is a standard prerequisite for obtaining a liquor license.

Specifically, the PLCB generally requires that alcohol-selling businesses have liquor liability coverage with limits of $1 million per occurrence/$2 million aggregate. Businesses normally also need general liability coverage in these amounts.

In addition to the coverage requirements, the PLCB usually also requires that the board be named as an “additional insured” on the liquor liability policy. An additional insured is a non-policyholder party that may also file a claim against the policy.

An insurance agent who specializes in liquor liability can help businesses make sure their policy meets all of the PLCB’s requirements.

What types of businesses get liquor liability coverage?

Because of the PLCB’s requirements, many different businesses selling alcohol in the state get liquor liability coverage. This includes liquor stores, bars, restaurants, nightclubs, and caterers. Businesses and nonprofits hosting events where alcohol is served may also need to have the coverage.

What sorts of incidents does liquor liability coverage protect against?

The exact incidents that any insurance policy covers are determined by that policy’s terms and provisions. Liquor liability usually protects against incidents such as the following when they involve an intoxicated customer:

• Common accidents resulting in injury (e.g., slips and falls)
• Assaults committed by intoxicated customers (sexual or otherwise)
• Public brawls involving intoxicated patrons
• DUI accidents involving customers who leave the premises intoxicated
• Hospitalizations due to alcohol poisoning

Does liquor liability extend to incidents occurring off-premises?

Liquor liability coverage often extends to incidents occurring off the business’s premises. If an intoxicated customer is involved in a sexual assault, fight, or DUI accident after they leave, a policy may cover the business’s liability for the incident.

This can be an especially important component of a liquor liability policy. Businesses should work closely with an insurance agent who understands this coverage well, to make sure off-premises incidents are indeed covered by their policy.

Does general liability insurance protect against incidents involving intoxicated customers?

General liability insurance typically doesn’t cover incidents involving intoxicated customers. This is a fairly standard exclusion for the coverage.

Liquor liability coverage is important partly because general liability usually doesn’t apply if an intoxicated customer is hurt in an accident. Liquor liability also often provides additional protections that general liability typically doesn’t.

Can liquor liability coverage be combined with general liability insurance?

Yes, liquor liability coverage can often be bundled with other types of insurance. This is normally done with a commercial package policy, which might include liquor liability, general liability, and other protections.

Does liquor liability coverage still apply if a customer is underage?

Serving alcohol to underage customers generally often voids liquor liability coverage. This is a fairly standard exclusion in liquor liability policies. Businesses are expected to comply with Pennsylvania’s legal drinking age requirements.

How much do businesses pay for liquor liability coverage?

The costs of liquor liability policies can vary based on many factors, frequently including the type of business, the kind of alcohol sold, the proportion of sales from alcohol, annual revenues, and any recent insurance claims.

To find out how much liquor liability will cost in a specific situation, businesses can work with an independent insurance agent. Independent agents are able to compare quotes from several insurance companies, including quotes for liquor liability coverage specifically and commercial package policies more broadly.

How can businesses get liquor liability insurance?

If your Pennsylvania business serves alcohol, contact us at Acri Insurance Agency for assistance with liquor liability insurance. Our independent agents can assist with this and other commercial insurance coverages, making sure your business is well protected against the various risks it faces.