Downtown Portland, Oreogn

Liquor Liability Insurance

Oregon has a Dram Shop Law which is a law that makes a business financially liable if they serve a patron who is clearly intoxicated and that intoxicated individual causes harm to other people, themselves, or property.  

Do you need Liquor Liability Insurance?

If your business manufactures, sells, serves, or facilitates the use or purchase of alcohol, then you need Liquor Liability Insurance. This coverage will provide your business protection for bodily injury or property damage for which you may become legally liable as the result of contributing to a person’s intoxication. This exposure is not covered under General Liability insurance.

Some examples of Oregon businesses that may need to have liquor liability insurance include:

  • Bars and pubs
  • Banquet Facilities
  • Breweries
  • Country Clubs
  • Nightclubs
  • Restaurants that serve alcohol
  • Retail Stores  – Beer, Wine, and Liquor
  • Social Clubs
  • Taverns
  • Venues that offer alcoholic drinks
  • Vineyards
  • Wholesale Distributors

The exact types of incidents that Liquor Liability Insurance covers depends on its specific terms and conditions. Common kinds of incidents that are often covered by Liquor Liability Insurance includes the following:

  • Personal injuries caused by a drunk individual
  • Property damage caused by a drunk individual
  • Fighting from a drunk individual being escorted away from the premises (Assault & Battery)

Alcohol can impair the judgement of the consumer and if your business is serving it, it’s important that you’re prepared for what may happen next. Restaurants, clubs, taverns and bars that serve alcohol in any form, including wine, beer and spirits could end up footing the bill for damages done by an inebriated patron.

Liquor Liability Insurance Costs

Liquor Liability Insurance costs are based on a number of factors which include:

  • Business experience
  • Type of business
    • Restaurant
    • Bar/Tavern
    • Nightclub
    • Comedy Club
  • Percentage of alcohol sales
    • Alcohol sales
    • Beer & Wine sales
  • What type of entertainment is on the premises
    • Live music
    • Karaoke
    • Mechanical bull
  • What is the average age of the patrons
  • What are the formal controls or loss prevention procedures?
  • What is the procedure for dealing with intoxicated patrons
  • Loss history

Reach out to me when you’re considering Liquor Liability Insurance. I will discuss with you how it works and assess if it fits into your risk management needs. If you determine this coverage is needed I will then provide you with comparative Liquor Liability Insurance quotes from multiple insurance carriers so you can get the best possible rate.

As an insurance broker I help businesses throughout Oregon and the Pacific Northwest manage risk.