Liquor Liability Insurance in Maine

Allen/Freeman/McDonnell Agency

What Is It?
Who Needs It?
Coverages Offered

Liquor liability insurance is specialized commercial liability protection for businesses that serve or sell alcohol. Policies can provide important coverage when other liability insurance doesn't.

Most Maine businesses selling alcohol should consider liquor liability coverage. Although coverage may not be required for a liquor license, a single incident could be bankrupting without protection. Bars, restaurants, nightclubs and even retailers may purchase this type of policy for protection.

Common "slip and fall" accidents involving intoxicated customers
Acts of assault or sexual assault by intoxicated customers
Public disturbances (e.g. fights) involving multiple intoxicated customers

What is liquor liability insurance?

Maine businesses that serve alcohol generally need protection against the risks that come with adult beverage sales. If an intoxicated patron should injure themselves or someone else, having liquor liability insurance may provide important coverage.

Liquor liability insurance is specialized commercial liability protection for businesses that serve or sell alcohol. Policies can provide important coverage when other liability insurance doesn’t.

Which businesses in Maine need liquor liability coverage?

A simple scenario demonstrates just how expensive a single incident could be. Consider a fight that could break out between two intoxicated customers. Any number of people might sue as a result:

Either party involved in the fight may sue the establishment, claiming that overserving led to the other party assaulting them
A bystander may sue if they were injured by a misplaced punch or misthrown bottle during the fight
A bystander may sue if they tripped and were hurt while trying to avoid the area of the fight
One or more bystanders may sue claiming that the fight caused them emotional distress

Any of these could result in a costly lawsuit, with high legal fees and potentially a settlement payment that must be made. Multiple lawsuits would only further increase the potential costs.

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What types of incidents do liquor liability policies cover?

Liquor liability policies can provide coverage for a wide array of incidents involving alcohol consumption. Depending on the specifics of the policy, coverage may include lawsuits arising from:

Common “slip and fall” accidents involving intoxicated customers
Acts of assault or sexual assault by intoxicated customers
Public disturbances (e.g. fights) involving multiple intoxicated customers
Car accidents caused by intoxicated customers driving under the influence
Alcohol poisoning that necessitates emergency medical intervention

In all of these scenarios, a business’s liquor liability coverage generally protects the business from lawsuits alleging that the business overserved a customer. The business’s policy normally doesn’t provide intoxicated customers with their own personal insurance coverage.

An insurance agent who specializes liquor liability can help businesses understand what types of claims a specific policy would likely protect against.

Do general liability policies cover accidents involving intoxicated customers?

General liability coverage and liquor liability coverage serve different purposes, and shouldn’t be considered interchangeable.

While general liability policies may cover standard “slip and fall” accidents, they usually exclude such incidents when the injured person is intoxicated. Additionally, general liability insurance typically doesn’t cover issues like assaults, brawls, DUIs or cases of alcohol poisoning.

This is why businesses that serve alcohol typically should have liquor liability coverage in addition to their general liability. When both general and liquor liability coverage are needed, businesses can often bundle these policies together in a commercial package policy.

What are the rates for liquor liability policies?

The cost of liquor liability coverage varies based on a multitude of factors, such as the business’s annual sales, the types of alcohol sold, and any recent claim history.

To get an accurate quote for liquor liability coverage, businesses should check with an independent insurance agent. As independent agents aren’t bound to a specific insurance company, they can objectively compare coverages and prices from multiple insurers.

How can businesses in Maine find liquor liability insurance?

For assistance with finding suitable liquor liability insurance, don’t hesitate to reach out to the independent insurance agents at Allen Freeman McDonnell Agency. We have extensive experience working with a range of businesses in Maine, including stores, restaurants and bars. We can surely help your business get the liquor liability coverage it needs.