Do You Need Liquor Liability Insurance for Your Event?

black and white photo of champagne toast by people that need liquor liability insurance for event

As an event organizer, there are many factors that go into preparing for an event. Ensuring the safety of both you and the guests should be a top priority. If you are serving alcohol and do not have liquor liability insurance for your events, have you considered what might happen if a guest injures themselves while on your property?

This is why liquor liability insurance should always be a part of your budget. Host liquor liability insurance for event expenses might seem like a pain, but they are always preferable to what can happen if not used.

ESP is proud to offer comprehensive alcohol insurance for events. We are a premier insurance specialist for all kinds of entertainment. When you contact us, we will be happy to discuss your event and how our insurance policies can protect you from any potential liabilities incurred if an injury happens on your property.

Keep reading as we explain whether you need alcohol insurance for events, what this type of insurance covers, and what it doesn’t cover. We will also give you some tips on creating a dynamic, price-efficient risk management strategy that can protect you from potential lawsuits.

What Types of Events Do You Need Alcohol Insurance For?

To keep things as simple as possible, let’s just say that you should factor in liquor liability insurance for event costs if you are hosting any type of gathering that serves alcohol. This is true if you’re serving alcoholic beverages at a wedding, are a mobile bartender attending an event, or virtually any other activity.

At this point, a venue owner or operator might wonder about guests who bring their liquor onto the premises. You still need liquor liability insurance in that situation as well. The same rule applies if you are hosting an event at a commercial venue and you’re not selling alcohol, but you’re still giving it away.

Making sure your general liability policy has host liquor liability included is paramount! Event planning can be a stressful time for all, so, having this type of insurance allows you to have one less thing to worry about!

Precisely What Does Liquor Liability Insurance Cover?

Liquor liability insurance is there to protect small business owners and event organizers or operators if a guest decides to sue you because they feel you were negligent. For instance, maybe rented equipment gets damaged during an event, which may become costly for you as a result.  

Liquor liability event insurance is your shield if you have to go to court to defend yourself after one of these incidents. That’s when you will be glad you got the proper insurance policy.

More specifically, alcohol liability for an event insurance covers:

  • Third-party Property Damage: Any guest who wants to dance or engage in some other impromptu physical activity risks injuring themselves. Event liability insurance protects yourself and the venue if this ever happens.
  • Non-Employee Bodily Injury: Any individual who consumes alcohol on your premises who is not one of your employees is potentially subject to injuring themselves. If a guest sustains any harm after over-serving themselves, alcohol liability event insurance covers that as well.

What Does Liquor Liability Insurance Not Cover?

It is just as vital to know what alcohol liability insurance does not cover as what it does. Comprehensive liquor liability insurance for event expenses will indemnify you from many situations involving overserved guests. However, be aware of a few scenarios that this type of insurance typically does not cover. They include:

  • Events Where You Have Allowed Underage Drinking: Venues that knowingly serve underage guests open themselves up for a potential lawsuit, even if they have the proper insurance policies in place. Be on the lookout for fake IDs or minors bringing drinks inside the venue and consuming them. If they injure themselves or others or damage property, you are potentially liable for monetary damages in court.
  • Damage to Your Personal Property: Another critical distinction with liquor liability insurance is that it is designed to cover third-party damage but not damage to your personal or business property. However, you can shop for and purchase separate insurance policies for that. Business equipment protection policies and commercial property coverage are the best choices for this kind of damage.

Can You Get Liquor Liability Insurance for One-Day Events?

Yes, you can get special one-day event insurance. ESP has insurance that covers venues for one-day events, and it is sensible to consider one of these policies. We also sell policies that cover you for the weekend, for a whole week, and similar situations. These policies are ideal for events like:

Whenever your venue is going to serve alcohol for a short time, you should purchase a limited-time alcohol liability insurance policy. The host liquor liability insurance for event costs will ensure your guests who are of legal drinking age can enjoy themselves in moderation. You can also get a mobile bartender liquor liability insurance policy. These are ideal for food trucks selling alcohol and similar things.

What About Events in Private Homes Where You Are Selling Alcohol?

Imagine you are having a dinner party with some adult friends. You serve them each a glass of wine. That is not an event where you’ll likely need alcohol liability insurance.

However, maybe you own some rural property. You have set up a stage so some local bands can play and are serving alcohol. In that scenario, you should purchase liquor liability insurance. If a guest accidentally hurts themself in this situation, they can hold you liable for their injuries if you are not protected.

The same rules apply if you have a third-party vendor selling alcohol at one of these events. In that instance, they should be the ones purchasing the proper policy. In these cases, you will want the third-party vendor to add you to their policy as an additional insured. This way, their coverage can extend to you.

Is It Possible to Minimize the Chance of Claims?

It is, and you should implement some common-sense policies. You make it less likely someone will sue you if:

  • You serve beer or wine, but not any hard liquor options. It is still possible someone will hurt themselves, but drinks with lower alcohol content make it less likely.
  • You offer a free shuttle bus. If you try to avoid anyone leaving your event who wants to drive home when they are over the legal limit, this is one way to prevent that.
  • You have a cash bar. Open bars encourage people to drink excessively. Guests are less likely to overindulge if they are paying for their drinks.
  • You use reputable vendors. Trained servers and licensed event staff will watch out for guests who have had enough. They can cut them off accordingly.

How Much Can I Expect to Pay for Liquor Liability Insurance?

There is not a one-size-fits-all liquor liability insurance policy. The cost always depends on several mitigating factors. These include what hazards might be present, the likely number of guests, and the event location.

The best thing to do is contact ESP and give us all the relevant details concerning your event. We will be happy to furnish you with a customized quote. We always aim to provide our customers with comprehensive coverage at reasonable prices.

Now that You Know the Basics, You Can Get Your Liquor Liability Insurance

Alcohol has been around for millennia. Not everyone indulges when they attend a gathering, but lots of people do. It can enhance many events, from concerts to weddings. No matter the occasion, though, if you are running the venue and serving alcohol or there is an entity serving alcohol with your permission, you need a liquor liability insurance policy.

You might decide not to get one. If you don’t, though, you are taking a serious and unnecessary risk. If someone hurts themselves on your property or there is some other alcohol-related mishap, and you have neglected to indemnify yourself, you might end up being penalized financially. The court system looks harshly at hosts who did not protect themselves and their guests by thinking ahead and taking the proper precautions.

You can contact ESP right now by phone or email to speak to one of our representatives, or you can leave a message with all of your upcoming event details. We will get back to you quickly with a custom competitively priced quote!

Events that serve alcohol can become happy memories, but there is always a risk element that goes along with them. Minimize that risk with a liquor liability insurance policy from ESP.

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