What's Your Liability When Liquor is Served?
An employer who sponsors a picnic at which an employee drinks too much alcohol and then injures another person in an auto accident immediately after leaving the party could be held responsible. Each state law is different in its treatment of this potential liability.
Businesses which deal with the sale of liquor, such as liquor stores, liquor wholesalers, bars and taverns, restaurants, and catering services should be sure their insurance representatives are aware of all aspects of their operations, since most business liability insurance policies exclude liability arising out of the manufacturing, distributing, selling, serving, or furnishing alcoholic beverages.
It is important that you let your insurance representative know of any business-sponsored event involving the use of liquor before the event occurs so he/she can amend your policy to provide suitable protection. Details such as whether or not a license is required, frequency of service, amounts of receipts (if any), and other details will help your insurance representative arrange protection in the most economical, effective manner.
We are pleased to provide this "Bulletin" as a service to you. While this information was obtained from sources believed to be reliable, its accuracy is not guaranteed. It does not change or alter insurance contracts or coverages.
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