A common and costly misunderstanding: assuming general liability covers alcohol-related claims. It doesn't.
| General Liability | Liquor Liability | |
|---|---|---|
| Covers | Slip-and-fall, property damage, non-alcohol-related injury to guests or third parties | Claims arising from serving alcohol -- intoxicated patron injury, dram shop claims |
| Typical trigger | A guest trips on a wet floor, a delivery damages a neighboring property | An intoxicated guest causes an accident after leaving, or injures someone on-site |
| Who needs it | Every business with a physical location and the public present | Any business that manufactures, sells, or serves alcohol |
| Excludes | Alcohol-related claims -- almost always explicitly carved out | Non-alcohol-related general claims |
Standard general liability policies typically contain a liquor liability exclusion -- meaning if your only coverage is GL, an alcohol-related claim could be denied entirely, leaving you fully exposed. The two policies are designed to work together, each covering what the other explicitly leaves out.
General liability protects against the everyday risks any business faces just from having people on the premises. Liquor liability protects against the specific risk that comes from serving alcohol. A bar or restaurant serving alcohol needs both to actually be covered, not just technically insured.
Check what your current policy actually covers