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Restaurants, taverns, or bars that allow patrons to bring their own alcohol and consume on their premises may be at risk for a liquor liability lawsuit depending on state law.

When offering coverage for your hospitality clients, a comprehensive package including liquor liability coverage for BYOB establishments is essential. The owner or employees of the establishment do not need to serve the alcohol in order to be held accountable. Defense costs can financially ruin your client, even if they were not found liable.

Owners of banquet halls may also be held liable for their vicarious liability when renting their hall for an event where alcohol is served, even though the owner does not serve the alcohol. If a caterer, the host of a party, or a hired bartender serves alcohol at the hall, the owner of the hall may also be drawn into the lawsuit if an alleged claim occurs. Contingent liquor liability coverage would be advisable to offer your client to cover the banquet hall owner’s exposure. This coverage would be contingent upon the servers having primary coverage in place.

Liquor liability coverage for these types of establishments is inexpensive, and a cost effective risk transfer to help keep your insured financially sound when an unexpected claim should arise.