The standard general liability policy excludes liquor related claims if you are in the business of selling, serving, manufacturing, furnishing or distributing liquor (alcohol, beer, wine, spirits, etc.). This exclusion applies even if you are “in the business” temporarily (example a 1 day event where liquor is served), and it applies even if you don’t make a profit from the sale of liquor.
Nonprofit corporations are not exempt. They would need this insurance just like a for profit corporation or individual would.
Charging an admission fee to an “open bar” event is considered being in the business of selling liquor.
Receiving a percentage of liquor sales from someone else (like the bar, or the promoter) is considered being in the business of selling liquor even though you do not directly sell or serve.
Having a liquor license in your name is considered being in the business of selling liquor. Even if others are doing the selling or serving for you.
Many, but not all, general liability policies include Host Liquor Liability. Host Liquor applies when hosts of a business or social functions serve alcohol without a charge or admission fee.
« Back to Glossary Index