Tavern Insurance for Restaurant Liquor Liability

ADCO General provides tavern insurance policies to cover liquor liability for businesses providing alcoholic beverages including restaurants, bars and taverns.  Tavern insurance liquor liability coverage is often package with the general liability insurance.

• Link to Application for Bars Taverns Restaurants and Nightclubs from United States Liability Insurance Group which is a Berkshire Hathaway Company

Tavern insurance is business insurance for a bar, tavern, night club, or other establishment providing liquor. Properly binding tavern insurance requires planning. Any business that sells alcohol to the public, whether it is a bar, tavern, or night club, needs detailed risk management planning for this significant exposure.

The following issues should be addressed for proper risk management planning for tavern insurance:

• Estimate the value of the tavern’s property, fixtures and contents.
• This is replacement cost if in today’s dollars.
• Calculate the portion of revenue derived from alcohol.
• Insurance companies require documentation proving the percentage of revenue from alcohol both before binding the tavern insurance contract and on an ongoing basis. Generally, tavern insurance for businesses where alcohol represents more than 50% of sales have higher premiums than those that don’t.
• Employee workers compensation insurance coverage and health insurance benefits must be considered.  Businesses that need tavern insurance may also have to pay a premium for workers comp.
• Dram shop liability laws vary from state to state.
• Tavern owners may be liable for third-party injuries caused by an intoxicated patron.
• Business vehicles must be covered. Businesses serving liquor that use vehicles for delivery should explicitly cover these units.
• Decide if your tavern will offer various games and other pass times. Higher premium and possible exclusion from coverage may be expected if certain activities are offered.  
• See the United States Liability Insurance Group Bars Taverns Restaurants and Nightclubs application for examples of risky items.

Tavern insurance covering liquor liability is needed to prevent worst case scenarios which can close businesses. Our experienced underwriters and brokers see that your clients get the tavern insurance coverage required.  Please contact ADCO General to answer questions regarding tavern insurance options and to get a quote.

• Link to Application for Bars Taverns Restaurants and Nightclubs from United States Liability Insurance Group which is a Berkshire Hathaway Company

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