There is a large business that I insure. Every Spring and Fall, they have a huge party with games, rides, displays, races, and alcohol for their 6000 plus customers. What would a party be without alcohol?
Two major considerations: are they in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages and is there a chance they could serve minors. I know that my client has no restaurant or bar on the premises. However, they allow families and with families come minors running around each event.
No business like alcohol
If they are in the business of serving alcohol – like a restaurant or bar, they would need to provide proof of a liquor license. Liquor liability policies have an exclusion for bodily injury coverage if the insured has an alcohol related business. Therefore, you have to make sure they understand the basic differences.
Further, when alcohol is present we know someone will get mad with Popeye, the crazy music will start playing and tables will start flying. Therefore, going hand and hand with liquor liability is the additional endorsement to cover assault and battery.
A problem with minors
We have all been to the fairs, carnivals, and events that serve alcohol. And we’ve probably stood in line behind the same kid who is trying to ‘put one over’ on the guy handing out the booze. What’s Illegal and excluded from bodily injury coverage – service to minors.
That’s right if our insured ends up serving a minor and that minor has an accident or drinks themselves to death, there is no coverage if our insured gets sued. So, we have to make sure the insured understands that barriers, protections, and checks/balances have to be in place so no minors get served.
Additionally, restaurants and bars are starting to come back to life. In the past 10 years, that business has suffered a great deal. If you look nationally, you see the larger mainstream companies are fighting their own battles with staffing and food preparation since the industry dropped off.
Make sure to do your due diligence before you place the business. Leave a comment or share an experience.