Alcoholic Beverage Liability Insurance

What Does Alcoholic Beverage Liability Insurance Mean?

Alcoholic beverage liability insurance protects owners of restaurants, bars, clubs, catering companies, and other establishments selling or serving alcoholic drinks against liabilities for damages or injuries to third parties caused by their inebriated clients or consumers.

Insuranceopedia Explains Alcoholic Beverage Liability Insurance

Alcoholic beverage liability insurance spares a business from paying thousands of dollars in lawsuit and for medical and damaged property expenses that it may be required by law to pay as a result of the behavior of its intoxicated patron.

For example, a man becomes intoxicated in a bar, drives a car, and injures a pedestrian. If the injured person sues the bar and wins, the insurance company will be the one to pay the injured party for the damages as well as the litigation and other legal expenses that come with the suit.