Liquor Liability Insurance in Connecticut

What is liquor liability insurance?

Selling alcohol to intoxicated persons comes with certain risks. The Connecticut Supreme Court ruled that persons who are injured by an intoxicated customer can sue the seller that served that customer alcohol. To help protect against this risk, businesses that sell alcohol in the state can get liquor liability insurance. 

Liquor liability insurance is a specialized form of liability coverage for businesses that sell alcohol. Coverage usually helps cover attorney fees, court fees, and settlements for covered incidents.

What businesses in Connecticut need to carry liquor liability coverage?

Connecticut businesses generally should have liquor liability coverage if they sell alcohol. Coverage is strongly recommended for both on-premises and off-premises consumption.

Some examples of businesses that commonly need to carry this type of coverage include:

  • Restaurants, bars, and nightclubs
  • Breweries, vineyards, and distilleries
  • Stores selling beer, wine, or spirits
  • Retailers selling alcohol at farmers’ markets
  • Caterers serving alcohol to customers’ guests
  • Festivals and other events where alcohol is sold
  • Nonprofits serving alcohol at events

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Liquor Liability Insurance Connecticut

What incidents does liquor liability cover?

Liquor liability may cover a variety of incidents that involve one or more intoxicated customers. While exact protections can vary, a policy may provide protection for the following:

  • Basic accidents (e.g. “slip and fall”) where the intoxicated customer is injured
  • Sexual assault perpetrated by the intoxicated customer on another person
  • Assaults by the intoxicated customer on one or more other people
  • Fights involving one or more intoxicated customers
  • DUI accidents by an intoxicated customer after they leave the premises
  • Hospitalization for alcohol poisoning

What limits should businesses choose when selecting liquor liability coverage?

Connecticut law generally limits a business’s liability for injuries that an intoxicated customer causes to $250,000. The maximum allowance is generally $250,000 for a single person’s injuries, and also a total of $250,000 for all injuries sustained during a single incident. 

Businesses shouldn’t make the mistake of thinking they need just $250,000 worth of liquor liability coverage. The allowed compensation doesn’t take into account attorney fees and court fees that would likely be incurred if sued. The limit is normally per incident, and businesses certainly could see multiple incidents over the course of a policy’s effective period.

For these reasons, limits substantially above $250,000 are usually recommended. An insurance agent who specializes in liquor liability can help businesses determine exactly what limit makes sense for them.

Does general liability cover slip and fall accidents if the injured person is intoxicated?

Although general liability usually covers basic accidents, such as slip and fall accidents, it normally excludes accidents if the injured party is intoxicated. For basic accidents where an intoxicated customer is injured, liquor liability is normally needed.

Liquor Liability Insurance Connecticut

When do nonprofit organizations need liquor liability?

Nonprofit organizations may need liquor liability anytime they serve drinks. Serving alcohol at fundraisers, celebrations, and other events usually necessitates coverage. A nonprofit could be held liable if something happens, even if the drinks are complimentary.

When coverage is needed for a particular event, short-term liquor liability coverage usually is available. A knowledgeable agent can check what policies can offer coverage for just the day(s) of an event.

Do businesses need liquor liability when hosting company parties?

Similar to nonprofits, companies usually also should have liquor liability if they serve alcohol. Coverage is normally recommended if drinks are served at a company party, even though employees and guests probably aren’t paying for their beverages.

Again, short-term liquor liability is typically available if coverage is needed for just one event.

How much does liquor liability for serving at a farmers’ market cost?

Businesses that serve alcohol at a farmers’ market will likely find that coverage can be quite affordable. It’s important to make sure that all situations where a business serves alcohol are covered, though, and businesses might also serve at festivals or other events.

An independent insurance agent should be able to find coverage for a farmers’ market and similar settings. Independent agents are able to check quotes from several insurance companies, which makes it easy to look at both coverages and premiums.

Where can businesses get liquor liability insurance?

If you need help finding liquor liability insurance in Connecticut, contact the independent insurance agents at Lana Insurance Center. We’ll make sure you find the coverage your business needs. 

Lana Insurance Center Inc

Contact Info

1259 South Broad St.
Wallingford, CT 06492
Phone: (203) 284-8801

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