General vs. Liquor Liability

Running a business that provides patrons with alcohol can have costly consequences without appropriate insurance. While most companies that serve alcohol have general insurance coverage, general policies are limited. To make up for a lack of coverage, businesses that serve alcohol also invest in liquor liability insurance. However, there are differences between general vs. liquor liability plans. 

General Liability Insurance

General liability insurance protects businesses from claims that take place during business operations. Typical day-by-day operation claims tend to involve bodily injury or property damage. For example, general liability plans provide coverage for accidents that may happen on the job, such as slip and fall injuries. 

Liquor Liability Insurance

General liability insurance does not offer protection for any claim that involves alcohol. With only general liability coverage, businesses may face major financial losses from an uncovered battery, assault, or property damage claim encouraged by alcohol consumption. With liquor liability insurance, businesses that serve alcohol receive financial protection in the case of a claim involving drunk driving or assault. 

Since businesses would be required to pay for property damages or medical expenses out of pocket without insurance, almost all responsible companies have general liability coverage. Additionally, businesses that regularly serve alcohol also invest in liquor liability insurance as a wise risk management move.