Liquor Liability Laws Drive Liquor Liability Insurance Requirements

Adco General anticipates state liquor liability laws when providing liquor liability insurance policies to agents and brokers covering affected people and businesses. These may include restaurants, bars, taverns, retail liquor stores selling liquor and individuals hosting special events where alcoholic beverage are served for free.

• Link to Application for Liquor Law Liability Insurance from the Golden Bear Management Company

The liquor liability laws typically focus on sales to people under the state’s legal drinking age. As of 2009, the legal drinking age in all 50 states is 21 years old. The only US exceptions are Puerto Rico and the US Virgin islands where the minimum legal age to drinking alcoholic beverages is 18 years old.  

Also, most state liquor liability laws restrict the sale of alcoholic beverages to people that are visibly intoxicated or known to be habitual drunkards. Specific standards for assessing relative intoxication vary by state and may be identified by consulting the individual state Dram Shop laws.

Generally, liquor liability laws, and the associated liquor liability insurance, distinguish between people who are not in the business of serving alcohol for a fee versus those that are in the business. Even though this difference may seem clear, it is important to understand the behaviors that, according to each state’s liquor liability laws, may deem a person to be in the business of serving alcohol from a legal perspective.

State liquor liability laws should be kept top of mind by businesses wishing to avoid the very bad potential outcomes that may result in the closing of the business. For example, a New Jersey court awarded in 1999 a $135 million verdict for Antonia Verni who was paralyzed when a drunk driver hit the car she was in. It was proved that the drunk driver had been served 14 beers at a Giants football game before causing the accident. The family successfully sued the NFL, the Giants and the beer sellers that were all considered liable according to the state’s dram shop laws for negligence.

Our responsive underwriters and brokers will make sure your clients get right information on the state liquor liability laws needed to provide the right amount and type of liquor liability insurance coverage. Please contact ADCO General  to discuss issues and options surrounding the relevant state liquor liability laws and the associated liquor liability insurance coverage options.

• Link to Application for Liquor Law Liability Insurance from the Golden Bear Management Company

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