Understanding Liquor Liability Insurance vs. Host Liquor Liability
Deciding if you need liquor liability insurance or host liquor liability insurance is confusing. Let’s look at each one to determine which best fits your needs. But first, let us look at why this type of insurance coverage is so important.
Why Insurance Coverage is Necessary
According to the National Institute on Alcohol Abuse and Alcoholism, “in 2010, alcohol misuse cost the United States $249.0 billion.” And “in 2012, 3.3 million deaths, or 5.9 percent of all global deaths (7.6 percent for men and 4.0 percent for women), were attributable to alcohol consumption.”
After looking at those statistics, you might be thinking that serving or allowing people to consume alcohol on your property or at your event is a significant risk. This is correct if you don’t have the right coverage in place.
But there is no need to stop serving alcohol at your business or events because when you understand the difference between liquor liability insurance and host liquor liability, you’re able to make sure the right coverage is in place.
What is Liquor Liability Insurance?
Liquor liability insurance is a policy meant for businesses that sell or serve alcohol. These policies provide coverage for legal expenses, which include things like settlements, lawyers’ fees, or damages when an intoxicated person sustains an injury or causes property damage.
Sometimes, these policies are part of general liability policies. These policies can also stand on their own, but when this is the case, a general liability policy also must be in place.
What is Host Liquor Liability Insurance?
Host liquor liability policies are meant for owners who do not sell or serve alcohol on their property but allow visitors to consume it.
It is common for this type of coverage to be a part of a general liability insurance policy.
Host liquor liability insurance covers things like medical expenses, property damage, and legal costs.
Good candidates for host liquor liability insurance include venue owners, those hosting corporate events, and restaurants that do not serve alcohol but allow visitors to bring their own.
How to Track Your Insurance Policies
Now that you know the difference between liquor liability insurance and host liquor liability insurance, you are all set to make sure you have the right coverage. A big part of assuring the right coverage is in place is keeping track of your policies.
With SmartCompliance you can upload or have your vendors upload their certificates of insurance (COIs) to ensure the right coverage is in place.
Schedule a free demo to see how SmartCompliance will streamline all your COI tracking needs and help you ensure compliance for your business.