When it comes to event insurance, two terms that often come up are host liquor liability and liquor liability. Both relate to the potential legal and financial consequences that can arise from the sale and consumption of alcohol at a venue. However, they apply to different scenarios and have different implications.
Host liquor liability refers to the liability that a social host (e.g., a person hosting a party at their home or at a wedding) may face if a guest becomes intoxicated and causes harm to themselves or others. On the other hand, liquor liability is a term used in the context of businesses that manufacture, sell or serve alcohol. This type of liability arises when a patron becomes intoxicated at the establishment and subsequently causes harm.
Despite their similarities, it’s crucial to understand that the two are not the same thing.
Understanding Host Liquor Liability
Host liquor liability is a legal concept that applies to social hosts. In the eyes of the law, a social host is anyone who hosts a social gathering where alcohol is served, but not sold. This could be a private individual hosting a birthday party at their home, a company hosting a corporate event, an organization hosting a fundraising event, or most commonly a wedding, to name a few examples.
The term comes into play when a guest at the event becomes intoxicated and subsequently causes harm either to themselves or others. If it can be proven that the host served alcohol to the guest despite them being visibly intoxicated, or to a minor, the host may be held liable for any damages that occur as a result.
However, it’s important to note that laws vary from state to state. In some states, social hosts can face significant legal and financial repercussions if their guests cause harm after consuming alcohol at their event.
Understanding Liquor Liability
Liquor liability pertains to businesses that manufacture, sell or serve alcohol. This could include bars, restaurants, breweries, distilleries, liquor stores, and more. If a patron at one of these establishments becomes intoxicated and then causes harm to themselves or others, the business may be held liable.
Laws also vary from state to state, but in many cases, they are much stricter than host liquor liability laws. This is largely due to the fact that businesses serving alcohol are expected to do so responsibly and are held to a higher standard.
For instance, a business could be held liable if they continue to serve alcohol to a visibly intoxicated customer who later causes harm. Furthermore, businesses can also be held liable if they serve alcohol to a minor.
The Key Differences
While both host liquor liability and liquor liability deal with the potential consequences of serving alcohol, there are several key differences between the two. Firstly, host liquor liability applies to scenarios where alcohol is served but not sold. Conversely, liquor liability applies to businesses that sell or serve alcohol.
In terms of legal implications, businesses are typically held to a higher standard compared to social hosts. This means that businesses face stricter laws and could potentially face larger financial consequences if a patron causes harm after consuming alcohol at their establishment.
Additionally, the insurance coverage for these two types of liabilities is different. Host liquor liability is often included in an event insurance policy, while businesses need to purchase separate liquor liability insurance.
Who Needs Host Liquor Liability Insurance?
Anyone who plans to host a social event where alcohol will be served should consider getting coverage. This includes individuals hosting parties at their homes, companies organizing corporate events, and organizations planning fundraising events.
Having proper coverage can provide peace of mind, knowing that you’re protected in case a guest causes harm after consuming alcohol at your event. It’s especially important if you live in a state with strict liquor laws.
Who Needs This Type of Insurance?
Any business that manufactures, sells, or serves alcohol should have liquor liability insurance. This includes bars, restaurants, breweries, distilleries, and liquor stores. Even if your business only serves alcohol occasionally, it’s still important to have this coverage.
Without it, businesses could potentially face significant financial consequences if a patron causes harm after consuming alcohol at their establishment. This could include legal fees, settlement costs, and damage claims.
Different Scenarios
To illustrate the effect of host liquor liability vs. liquor liability, consider the following scenarios. In the first scenario, an individual hosts a party at their home where alcohol is served. One of the guests becomes intoxicated and then gets into a car accident on their way home. If the host served alcohol to the guest despite them being visibly intoxicated, the host could potentially be held liable for the damages resulting from the accident.
In the second scenario, a patron at a bar becomes intoxicated and then gets into a fight with another customer, causing them harm. If the bar continued to serve alcohol to the patron despite them being visibly intoxicated, the bar could potentially be held liable for the damages caused by the fight.
Tips to Mitigating Risks
Regardless of whether you’re a social host or a business, there are steps you can take to mitigate the risks associated with serving alcohol. Firstly, always ensure that you’re serving alcohol responsibly. This means not serving alcohol to visibly intoxicated individuals or minors.
Secondly, consider hiring trained bartenders who are knowledgeable about responsible alcohol service. They can help identify intoxicated individuals and prevent them from consuming more alcohol.
Finally, if you’re a business, consider implementing policies that promote responsible drinking. This could include offering complimentary non-alcoholic beverages, promoting responsible drinking messages, and training staff on responsible alcohol service.
Where to Get Host Liquor or Liquor Liability Insurance for an Event
Most insurers include host liquor liability and provide an online purchase option. Insurers that allow for online event insurance purchases include: Markel, GatherGuard, Allstate, SpecialInsurance.com, and State Farm.
Our Top Picks:
Be sure to check your venue’s insurance requirements before securing a policy!
GatherGuard
Damage to rented premise limit: $250,000
Medical expense limit: Not included
Waiver of Subrogation Endorsement: No
Primary Noncontributory Endorsement: No
Liquor Liability Available for Upgrade/Purchase: Yes
Free quote feature available
SpecialInsurance.com
Damage to rented premise limit: $300,000
Medical expense limit: $5,000
Waiver of Subrogation Endorsement: Yes
Primary Noncontributory Endorsement: Yes
Liquor Liability Available for Upgrade/Purchase: No
Free quote feature available
Coverage can extend beyond midnight depending on state liquor laws, in which case only 1 day of coverage is required