Archive for Hospitality
Property and liability insurance coverage on bars is difficult to place because ofhazards, loss history, and clientele. Bars may be located in urban high crime areas or in isolated rural areas that makes them theft targets because of the appeal of their liquor inventory and the day’s receipts. Many bars still permit smoking which can create an explosive situation when combined with alcohol. Liability hazards are the traditional premises slips and falls on premises and in parking lots that are aggravated by liquor-impaired judgment. Many bars offer activities such as dancing, live-entertainment, games, and contests that can significantly increase their exposure to loss. All bars have vicarious liquor liability exposures but the degree of the exposure depends on laws in the particular state.
Bed and Breakfasts and Country Inns
Bed and breakfast inns are homes to their owners and lodging for paying guests. They are popular with tourists who want something different than what is available in regular hotels or motels.
Liquor Liability (Host Coverage)
A few markets write host liquor liability insurance to protect the possible exposure of individuals or business firms against liability for their use of liquor for business and non-business entertainment. Commercial general liability policies do not exclude coverage for claims that arise out of the use of liquor by firms that do not manufacture, sell, distribute, or serve alcoholic beverages. However, this coverage can be very useful when the named insured and the insurance company disagree about whether coverage applies at events when an accident that involves alcohol occurs.
Liquor Liability and Dram Shop Act Liability
Bars, restaurants, hotels, motels, and other businesses that sell, distribute, or serve liquor need coverage for their vicarious liability for injury or damage that arises out of acts of patrons served alcoholic beverages in their establishments. Specialty insurers write liquor liability coverage. It covers common law and statutory liability exposures for the businesses and also owners, general lessees, or mortgagors of the property. Insurer interest in writing this coverage and the premium levels available vary from state to state, based on the liquor liability laws in each state.