Liquor Liability Insurance Florida

Liquor Liability Insurance in Florida: The Only Guide You Need

If your business involves selling, serving, or manufacturing liquor or alcoholic beverages, then you need liquor liability insurance coverage so you can protect your assets as well as yourself in case of a lawsuit or claim.

Purchasing a separate insurance liquor liability policy is needed, as liquor-related liabilities are not part of a general liability insurance coverage. This means that you are not protected from unexpected situations that can lead to your business’s potential losses. Here’s what you need to know.

Bar shelves packed with alcohol bottles.

What is Liquor Liability Insurance?

As mentioned above, liquor liability insurance covers businesses that manufacture, serve, and sell alcohol. This policy is useful as it covers legal fees, medical costs associated with bodily injuries, settlements, and property damage caused by intoxicated people served or sold liquor by the insurer. 

Usually, the businesses that need liquor liability coverage are restaurants, bars, breweries, convenience stores, liquor stores, wineries, and other companies that sell alcohol, regardless of their size. In some cases, businesses are legally required to have this coverage before they can get a liquor license. 

Liquor Liability Laws in Florida

When we talk about Florida liquor liability insurance, we also need to mention the laws regarding liquor liability in this state. If someone gets hurt by an intoxicated person, the court in Florida will hold the intoxicated person liable in many cases. In some cases, a third party may also be held accountable. 

It is important to remember that Florida dram shop law outlines this liability. Because liquor liability laws vary by state, many people can get confused with Florida’s insurance policy coverage options. 

Here is what you need to know:

Florida Dram Shop Laws

The term “dram” comes from an old liquid unit of measurement. In the past, people used to buy alcohol by the dram. That said, a dram shop is a place where you can buy alcohol. Dram shop laws hold anyone who serves alcohol financially liable for harm that intoxicated people caused to other people, themselves, or property. These laws apply to bars, liquor stores, restaurants, social clubs, and private events. 

Liquor Legal Liability

Liquor legal liability covers bodily injuries and property damages that come from contributing to a person’s intoxication. This type of coverage only comes from a separate policy, and it provides coverage for establishments that manufacture, sell, distribute, or serve alcoholic beverages. 

Host Liquor Liability Insurance Policies

These policies cover special events for businesses that serve alcohol to their employees, customers, and prospects. 

Who Needs Liquor Liability Insurance in Florida?

Florida liquor liability insurance is required for businesses that sell or serve alcoholic beverages. 

Here are some of the businesses that need coverage for liquor liability:

  • Bars 
  • Taverns
  • Wineries
  • Breweries 
  • Caterers
  • Grocery stores
  • Liquor stores
  • Restaurants

Liquor Liability Insurance Cost in Florida

On average, Florida liquor liability insurance can protect your business from dangerous and unlawful actions of intoxicated people with rates as low as $37 per month. However, some important factors influence the cost of your liquor liability insurance, including:

    • Exposure: Not all businesses that sell alcohol pay the same rates for liquor liability insurance in Florida. For example, convenience stores with 10% liquor sales pay less than grocery stores with 40% liquor sales.
    • Profession: Liquor liability insurance rates also depend on the industry you’re in. A catering business faces different risks on a daily basis than a restaurant, and that’s why their rates aren’t the same. 
    • Location: Liquor liability insurance cost also depends on your location. Businesses located in places with a higher number of total claims pay more than those with fewer claims.
  • Claims History: In most cases, insurance companies consider businesses with a poor claims history as higher risk. That said, these businesses will usually have higher rates than businesses that have no claims. 

What is One Day Event Insurance?

One-day event insurance, or Single-day event insurance, is a special type of event insurance that provides coverage for people or companies hosting an event. 

For example, if there is an accident or property damage at your event, this type of insurance covers all costs. One-day events include food truck festivals and 5K runs, but depending on the event you plan to throw, you should always make sure you have proof of insurance when operating at the event. 

Remember that even if the event you are planning is short, there is always a risk that can be prevented. One piece of valuable property or one injured guest can lead to significant legal liability risks. 

What Does Florida Liquor Liability Insurance Include?

Florida liquor liability insurance may include covering the expenses for legal defense in the event of a lawsuit as well as employee inclusion, which provides coverage in case an employee consumes alcohol while on duty. 

This liquor liability insurance can also offer coverage for assault and battery claims, which relieves you of the responsibility for a drunk customer’s bad behavior or poor decision after you have served them liquor. 

You may also include property damage and damages to people in your liability policy so you will be protected from paying for something you did not damage.

What Type of Liquor Host Liability Insurance to Get?

If you are still not sure about the type of liquor liability insurance you need, it may be best to talk to an experienced liability insurance agent, so they can guide you about what Florida liquor liability insurance works well for your business. This way, you also save time and money, and you can have some confidence that your place is safe from claims and lawsuits.

A liability insurance agent can give you a liquor liability insurance quote and let you have the right price to fit your budget. 

Serving liquor at an establishment always comes with many risks because there is a big chance that someone will get intoxicated, and the result is never good. When your drunk customer does some wrong actions or if something terrible happens to them, you can be held liable, which is why purchasing liquor liability insurance is essential if your business involves alcohol. 

Even if you have general liability insurance, you still need to get a host liquor liability insurance if your business has exposure to alcohol, because it is not part of a commercial general’s coverage liability policy. When you get a separate liquor liability insurance coverage, it will include property damage and bodily injury, so you get protection if a particular situation occurs due to an intoxicated client’s actions.

When you have liquor liability insurance in Florida, the insurance company is obliged to pay the amount you are obligated to pay due to the damages made by someone you sold the liquor to and has resulted in an injury or damage.

Finally, even if you already have a general liability policy, you still need to get liquor liability coverage for added security and protection. Apart from this type of insurance, you may also consider other policies to protect your assets, such as a stop-gap liability, employment-related practices, environmental impairment, leasehold interest, real property legal liability, etc. 

You may also add other coverages like breakdown of equipment, employee benefits, umbrella insurance policy, workers compensation insurance, hired and non-owned auto insurance, and of course, you will probably need liquor liability insurance in Florida. The add-ons will depend on your company’s needs and budget.

Did you like this article? If you learned something new today, you might also want to check more information about business insurance in Florida as well!