BROCHURE: UNDERSTANDING THE LIQUOR LIABILITY COVERAGE FORM (OCCURRENCE BASIS)

(November 2025)

The Commercial General Liability Coverage Form specifically excludes liquor related losses if your business sells, manufactures, distributes, serves, or furnishes liquor. Additionally, many insurance providers exclude liquor coverage by endorsement for operations that regularly serve alcohol on or off premises, even if they are not classified as “in the business.” If your business involves liquor exposure and your Commercial General Liability Coverage excludes liquor liability, obtaining Liquor Liability Coverage is essential.

Disclaimer: The information provided in this brochure does not represent the exact contract terms of the policy. Consult the actual policy for exact definitions, conditions, coverages, exclusions, and limitations. Coverage may vary based on the company's underwriting guidelines and practices.

WHAT IS COVERED

The company agrees to defend you and cover any sums you are legally required to pay due to bodily injury and property damage caused by a person to whom you sold, distributed, or furnished alcoholic beverages.

WHAT IS NOT COVERED

Every insurance policy or coverage form includes certain exclusions and limitations. This is because only specific types of businesses may need a particular coverage, or the risk of loss may not be insurable for various reasons.

Some common exclusions include:

• Expected or Intended Injury
• Workers Compensation and Similar Laws
• Employers’ Liability
• Liquor License Not in Effect
• Your Product
• Other Insurance
• War

NOTE: It’s essential to carefully review the coverage form for additional limitations and exclusions.

CONDITIONS

The policy includes a conditions section that outlines your obligations to the insurance company, as well as the company's obligations to you in case of a loss.

Some common conditions include:

• Bankruptcy
• Duties in the Event of Injury, Claim, or Suit
• Legal Action Against Us
• Other Insurance
• Premium Audit
• Representations
• Separation of Insureds
• Transfer of Rights of Recovery Against Others to Us
• When We Do Not Renew

DEFINITIONS

Refer to the coverage form for a list and description of definitions.

ENDORSEMENTS

The Liquor Liability Coverage Form provides relatively narrow coverage, resulting in fewer available endorsements for customization.

NOTE TO SUBSCRIBERS: The related article below will provide a list of available endorsements.

Related Article:Liquor Liability Coverage Forms Endorsements Checklist

REPRINT PERMISSION

PF&M subscribers in any manual or electronic form are permitted to reprint any portion of this brochure for their commercial insurance customers. Other uses require permission by The Rough Notes Company, Inc.