From the Front Lines: Liquor Liability

How did you get started at your agency?

I started in 2006 after being president of a wholesale agency/aggregator and deciding it was time to venture out on my own. In ’07 I merged my startup agency, and it’s been full speed ahead ever since.

Why liquor liability?

We fell into it because I had one producer who insured a lot of bars and restaurants. We started doing special events for different organizations, weddings, caterers. Before long, we had a pretty diverse book, and I think we got lucky that we wrote a webpage that was well-optimized for liquor liability. Then we started getting quote requests.

Biggest liquor liability challenges?

One of the challenges is explaining the difference between a general liability and a liquor liability claim. If the client has had too much to drink and they slip and fall in a bar, is it a liquor or GL claim? In cases like that, we explain the importance of having both coverages because the two could point fingers at each other.

What do you say to a first-time liquor liability client?

The liquor liability goes beyond whether or not you serve too much alcohol. It could also involve situations of assault and battery outside a nightclub. That raises a lot of awareness to the client. They’re concerned about people getting into fights once they leave the premises.

Liquor liability advice for a fellow agent?

I would make sure they offer a comprehensive liquor liability product that is going to include assault and battery because not all of them do. A company such as USLI has a very complete product, as opposed to going to a surplus lines broker and assuming the liquor liability coverage is adequate. There may be exclusions.

Favorite liquor liability success story?

We haven’t had a lot of liquor liability claims. The big thing is understanding the importance of separating their receipts between liquor and food. When it comes time for an audit, they want to make sure there’s a division. That will have a direct impact on rates. We try to educate clients upfront so they don’t lump all receipts together.