All business owners need general liability insurance to cover the risks inherent to operating a business. If that business serves alcoholic beverages, however, additional coverage is needed. The fact is that bar and restaurant owners can be held responsible for the behavior of customers when they are under the influence, which is why liquor liability coverage is a smart thing to have. Read on to learn more about general vs. liquor liability.

General Business Liability

A general liability policy indemnifies the business owner against lawsuits stemming from accidents and injuries stemming from operations. A common example for a restaurant would be a customer who suffers a slip-and-fall accident, chokes on something, or gets sick from eating a particular dish.  It also covers property damage and IP disputes (for example, if a restaurant believes a signature recipe or proprietary dish has been co-opted)

Liquor Liability

General business insurance does not cover liquor liability and must be purchased separately. If the state has dram laws, it is a legal requirement. Without liquor liability insurance, the tavern or restaurant owner can face a lawsuit if someone is injured or killed by an intoxicated patron.  Even if it is not legally required, it is wise to have liquor liability coverage if the establishment serves alcohol.