Do I Need Liquor Liability Insurance For My Catering Business?

If you run a catering business that serves alcohol, you should carry catering liquor liability insurance. It protects you and your business from being responsible for the cost of claims arising from a multitude of scenarios. For example, a customer imbibes too much alcohol, drives away from your restaurant, and then gets into an accident that creates severe injury. The price of that claim could be tens of thousands of dollars. Aside from expensive claims, protecting your catering business with catering liquor liability insurance helps your business’s credibility and professionalism and thus can increase your bookings. When accidents happen, insurance shows that you are prepared.

Claim Examples You Could Face

Claim Example 1: A wedding guest was served alcohol, and lost control of his vehicle which resulted in serious injuries to several of his passengers. Damages due to negligent service reached over $1,000,000 and expense costs were $62,000. Claim Example 2: A food caterer served alcohol and one of the guests was in a car accident. His passengers were paralyzed and suffered severe injuries. The claim for negligent service reached $500,000 and expense costs of exceeded $70,000. Claim Example 3: At a holiday party, a guest lost control of her vehicle and hit a tractor trailer. The tractor trailer driver sued and won $300,000 for negligent service.

What Is Liquor Liability Insurance?

According to your local Dram Shop law, your catering business could be held liable for accidents, injuries, and other damages caused by individuals you served alcohol to. Liquor liability claims can be expensive, often costing businesses hundreds of thousands of dollars. Liquor liability insurance is designed to reduce the out-of-pocket cost your business may be required to pay without coverage. Insurance Canopy’s Liquor Liability Insurance For Caterers includes general and liquor liability as well as additional policy options to protect your company for the variety of claims it could face.

Do I Need Liquor Liability Insurance?

Yes. Depending on the state, if your catering business sells or serves alcohol, you may be required by law to protect your business with liquor liability insurance. However, even if you are not required to have insurance, there are many benefits that come from covering your business. As a business that serves alcohol, your business could be liable to pay for damages caused by individuals you served alcohol to, especially visibly intoxicated persons and minors. With Liquor Liability Insurance For Caterers, you can financially protect your business should an accident occur.

Liquor Liability Insurance for Caterers

Safeguard your business with alcohol catering insurance from Insurance Canopy!

ANNUAL POLICY

^$35.42^*

Monthly

EVENT POLICY

^$275^*

1–3 Day Event

*Prices vary by state

Affordable, High-Quality Alcohol Catering Insurance

Liquor liability insurance for caterers can shield you from the cost of lawsuits, legal claims, and damages from selling or serving alcohol.

Our Partner

Catering Liquor Insurance Details

*Pricing varies depending on limits selected.

Liquor Liability Limits Options

Occurrence Limit*

$100,000 – $1,000,000

Aggregate Limit*

$300,000 – $2,000,000

General Liability Limits

Products and Completed Operations Aggregate

$1,000,000

Personal and Advertising Injury

$1,000,000

Each Occurrence Limit

$1,000,000

Damage to Premises Rented to You

$100,000

Medical Expense Limit

$5,000

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What Is Liquor Catering Liability Insurance?

Liquor catering insurance is general and liquor liability coverage for caterers that sell, serve, or provide alcohol. It protects you and your business from costly claims resulting from an intoxicated customer.

According to most dram shop laws, you can be held responsible if a drunk patron causes an accident, especially if they were overserved or underage. Liquor catering insurance could absorb some or all of those expenses, protecting you and your business.

How Much Does Liquor Liability Insurance for Caterers Cost?

General and liquor liability insurance for caterers starts as low as $550 per year or $35.42 per month.

Your final cost depends on your state, the limits you select, and the nature of your business.

Do I Need Alcohol Catering Insurance?

Yes. Many states require you to carry liquor liability insurance if your catering business sells or serves alcohol. Most venues also require caterers to show proof of insurance.

Even if it’s not mandatory, alcohol catering insurance can save you from massive claims that could otherwise bankrupt your business.

What Claims Are Covered by Liquor Liability Insurance for Caterers?

Liquor liability insurance for caterers covers common claims you may face in your operations. These include third-person bodily injury, personal or advertising injury, and property damage claims.

If you overserve a customer or accidentally provide alcohol to a minor, liquor liability can help cover medical bills, legal fees, and other financial responsibilities that may result from their actions while intoxicated.

FAQs About Liquor Liability Insurance for Caterers

What Is the Difference Between Liquor Liability Insurance and General Liability Insurance?

General and liquor liability insurance cover different parts of your business, and you need both to protect the full scope of your operations.

General liability responds to third-party claims that don’t involve alcohol. For example, if a customer slips on a spilled drink near the bar and injures their back. On the other hand, liquor liability handles alcohol-related claims, like if an intoxicated customer backs their car into the venue’s deck and damages it.

What Types of Events Are Covered Under Liquor Catering Insurance?

Liquor liability insurance for caterers protects you at nearly any event where your business serves alcohol, including:

Weddings
Birthday parties
Corporate events
Anniversary parties
Graduation parties
Holiday parties

As long as your business has all legally required permits and licenses, you have coverage.

What Are the Risks of Not Having Liquor Catering Insurance?

Operating without alcohol catering insurance could result in huge expenses for yourself and your business. If an intoxicated customer causes an accident, you could be forced to pay for court costs, hospital bills, repair fees, and other related costs out of pocket. This can lead to business closure and even bankruptcy.

Choosing the right insurance is critical.

You can’t afford gaps in your coverage that could put you out of business.

Need additional information before making a decision?

Give our team a call today at 844.520.6993

Liquor Liability for Caterers

Running a catering business can be fun, but paying for liquor liability claims sure isn’t. Protect your catering business today with Insurance Canopy’s liquor insurance for caterers.

Liquor Liability Insurance for Caterers

Affordable, High-Quality Alcohol Catering Insurance

A+ Rated, Comprehensive Coverage

Shield Your Catering Business From Costly Claims

Catering Liquor Insurance Details

What Is Liquor Catering Liability Insurance?

How Much Does Liquor Liability Insurance for Caterers Cost?

Do I Need Alcohol Catering Insurance?

What Claims Are Covered by Liquor Liability Insurance for Caterers?

FAQs About Liquor Liability Insurance for Caterers

What Is the Difference Between Liquor Liability Insurance and General Liability Insurance?

What Types of Events Are Covered Under Liquor Catering Insurance?

What Are the Risks of Not Having Liquor Catering Insurance?

Liquor Liability for Caterers

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