Demetriou General Agency                                                  May 2012

 

Retail Liqour Liability
beer
 
 

Some Retail Operations With Liquor Liability Exposures:

 

Delis

Pizza Parlors

Convenience Stores

Liquor Stores

Beverage Distributors

Grocery Stores

 

  

Why Buy Liquor Liability Insurance for Your Convenience/Deli/Grocery Store?

 

 

 

Retail alchohol operation across the country account for $13.4 billion

in sales. Even though there is no on-premises consumption, you could still be held liable for an illegal or improper sale of alchohol!

 

Limits of insurance:

 

Liquor liability limits starting at $25,000 each occurrence/$50,000 aggregate with limits up to $1,000,000 each occurrence/$2,000,000 aggregate

 

 

 

 

 

Why you need

Liquor Liability Insurance:

 

  • An establishment's largest exposure is sale to a minor. You can be held liable if any employee sells alcohol to someone who is "actually or apparently under 21"
  •  Establishments have the risk of selling to a patron who is visibly intoxicated or a habitual drunkard and may be held liable in the event of a claim
  • Even if an establishment is not found liable, the average cost to defend a claim is $150,000 
  •  Insurance is a known annual expense compared to the unknown financial impact of defense costs and court verdicts 
  • Managing the litigation process of a liquor liability claim can be time consuming and overwhelming - let an insurance company handle this for you

     

Did you know:  
  • If your business is located in a state that recognizes joint and several liability, you can be held liable for an entire claim even though there is no on-premises consumption at your establishment.
  • Protect your liquor license and bottom line by purchasing Liquor Liability coverage from an insurance company rated A++ Superior by A.M. Best.
Claim Examples:
 

A 16-year-old male purchased beer from a local retail store where his ID was not checked. He took the beer to an underage drinking party. Several hours later, his 20-year-old sister arrived to take him home, and she also consumed some beer. After they left, she lost control of her convertible which flipped over and killed her brother.

 

The mother of the deceased filed suit against the retail store. Even though the person who caused the accident did not actually purchase the alcohol, the retail store was held liable due to the illegal sale to a minor. The claim settled for $580,000 in damages, and expense costs totaled an additional $100,000.

 

A 19-year-old male was consuming beer he purchased at a local gas station when he crashed his car into a tree. The passenger in his vehicle sustained significant brain damage, fractured legs and other internal injuries.

The passenger sued the gas station for selling alcohol to a minor. The claim settled for the full policy limit of $1,000,000.

 

 

CONTACT
 

Timothy Cotugno, Business Development Manager

Demetriou General Agency, Inc.

415 Madison Avenue | 13th Floor | New York, NY 10017

(212) 897-6912 Ext. 4214 | (516) 495-5314 Fax

tcotugno@demetriougroup.com | www.demetriougroup.com