What Is Host Liquor Liability Insurance?
Host liquor liability insurance protects businesses that don't normally serve alcohol. If your company offers drinks at a special event, like a holiday party, team outing, or networking mixer, this coverage can be useful. It helps cover issues like accidents or property damage caused by someone who drank too much.
For example, say you serve alcohol at an open house for clients and vendors. If a guest drinks too much and causes an accident or injury, host liquor liability could help with the damages so you don't have to pay out of pocket.
Host liquor liability vs. liquor liability insurance
Although they sound similar, host liquor liability and liquor liability insurance serve different purposes. Businesses that sell, serve, or distribute alcohol need standalone liquor liability insurance. Bars, restaurants, breweries, and liquor stores count on this coverage to protect against costs when an intoxicated customer causes injuries and property damage.
Host liquor liability insurance is for businesses that don't profit from selling alcohol but occasionally serve it as part of an event. Host liquor liability usually falls under a commercial general liability policy, which is essential for small businesses.
Do I need host liquor liability for BYOB company events?
Yes. If employees can drink alcohol at a company function, host liquor liability insurance is worth considering. It doesn't matter whether your company is providing the drinks, operating a cash bar through a catering service, or letting employees bring their own, like at a picnic or casual gathering. Even if your business isn't supplying the alcohol directly, you can still be held responsible if something goes wrong.
What does host liquor liability insurance cover?
Host liquor liability coverage typically protects your small business from the following types of claims:
- Bodily injury: Covers injuries resulting from incidents involving the intoxicated person, including car accidents.
- Property damage: Pays for damage caused to your venue or third-party property.
- Legal expenses: Helps cover legal costs, court fees, and settlements if you're held responsible for an incident involving alcohol.
- Medical expenses: Pays for hospital bills and ongoing medical treatment for injured third parties.
What isn't covered by host liquor liability insurance?
Like most insurance policies, certain exclusions may apply. Host liquor liability typically doesn't cover:
- Deliberate or criminal acts while under the influence of alcohol
- Incidents involving liquor served to underage guests
- Injuries to your employees - for that, you'll need workers' compensation insurance
- Events operating without a required liquor license
Overserving and host liquor liability
Don't serve alcohol to someone who's clearly had too much. Many states have laws against overserving, and you can be held responsible if you knowingly serve someone who's already impaired. While host liquor liability insurance can cover incidents involving intoxicated guests, preventing overserving is a safer and smarter way to protect your business.
How much does host liquor liability insurance cost?
You'll typically get host liquor liability coverage under a general liability insurance policy. In 2024, the national median cost of general liability for new Progressive Commercial customers was $60 per month, with an average monthly price of $85.
Your rate is determined by factors like business type and size, number of employees, location, and claims history. For a customized rate, start a quote online. We can help you find the right balance between cost and coverage.
Who needs host liquor liability insurance?
If you don't sell, serve, or distribute alcohol as your primary business but host company events where drinks are served, you should consider host liquor liability coverage. Examples include:
- Fundraising events
- Holiday or retirement parties
- Corporate outings
- Networking events
Reduce the risk of an incident
If you hold an event and plan to serve alcohol, getting a host liquor liability policy should be the first order of business. But there are other steps you can take to reduce your risk of an incident. Suggestions include limiting the number of drinks each guest is allowed, hiring licensed bartenders, and offering rideshare services.
Does a business owners policy cover host liquor liability?
A business owners policy (BOP) usually doesn't include host liquor liability coverage. However, if you have a general liability policy through Progressive Commercial, you're typically covered for alcohol-related incidents connected to business events.
How to get host liquor liability insurance
At Progressive Commercial, we make getting a host liquor liability policy easy. Our licensed business insurance experts understand the risks associated with serving alcohol at events and can help you find coverage that suits your needs and budget.
Whether you're planning a one-time gathering or host regular social functions, we're here to connect you with the protection you need. Speak to an agent or start an online quote. In many cases, you can get same-day coverage so you're protected when you need it most.
