At Swarts Manning Spirits, we specialize in providing commercial insurance expertise and risk mitigation for the winery, brewery, and distillery industries. The spirits industry faces unique risks that require supplemental coverages beyond standard general liability, property, commercial auto, workers’ compensation, and umbrella policies. Specialized coverages such as crop protection, contamination and spoilage, equipment breakdown, product liability, special events liability, and vine/trellis coverage are just a few. However, one crucial coverage that every business operating a tasting room must have is liquor liability insurance.
Liquor Liability Insurance
Similar to restaurants serving alcoholic beverages, tasting rooms open to the public for product sampling and other offsite special events must prioritize liquor liability coverage. Did you know that if a customer overserved alcohol in a tasting room or at an event causes injury or property damage, the liability could fall on the winery, brewery, or distillery that served them? Without liquor liability insurance, businesses face the risk of significant legal costs, court fees, and potential civil or criminal damages.
A standard liquor liability policy offers protection for third-party bodily injury, third-party property damage caused by an intoxicated person, and associated legal expenses. Some commercial general liability (CGL) policies may extend to liquor coverage in certain scenarios, such as overserving a guest at an office party. However, these host liquor coverages (if included) typically do not apply to businesses that regularly sell or serve alcohol.
Understanding Your Coverage
Liquor liability and general liability policies often work together. However, even with liquor liability insurance, exclusions apply. For example:
- Expired liquor licenses: Coverage will not apply if a liquor license lapses.
- Expected or intentional injuries: Losses deemed intentional or expected are excluded.
- Restaurant endorsements: Businesses with attached restaurants may require additional endorsements.
These nuances highlight the importance of understanding the intricacies of your insurance policies. Partnering with an insurance broker specializing in the spirits industry ensures you have the appropriate coverages for your unique needs. If your business offers tastings or sells alcohol, a liquor liability policy is non-negotiable for protecting your operations and financial stability.
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