PRODUCT: Liquor liability

COMPANY: Fireman’s Fund Insurance Company

BEST RATING: A

AVAILABILITY: Fireman’s Fund distributes liquor liability and other products through appointed independent agents.

FOCUS: Fireman’s Fund provides affirmative liquor liability coverage by endorsement for commercial customers that have a liquor exposure. The company offers a proprietary endorsement that is “unique in the marketplace,” says Kathy Clark, products director for casualty for Fireman’s Fund: The liquor liability aggregate limit can be endorsed to apply on a per-location basis. “So if you have a restaurant or hotel account that has multiple locations, this is a real benefit to them,” she says. And it’s not only available on Fireman’s Fund primary coverage, but also flows through to the umbrella.

Understanding which endorsements are attached to a policy is crucial in liquor liability, since they can vary by company, Clark adds. Because the majority of companies use the ISO general liability form—which excludes liquor liability coverage for any insured in the business of selling or serving alcohol—liquor liability coverage is clearly excluded for an establishment like a restaurant, hotel bar or country club that regularly charges for alcohol as part of their business. “They need to purchase a separate liquor liability endorsement to their policy to buy back that coverage,” Clark explains.

In cases where service is only occasional—charging for alcohol as part of a fundraiser, for example—“it can vary by state and insurer,” Clark says. “I would advise agents to have an endorsement attached specifically providing liquor liability beyond what the commercial general liability form provides.” Another ISO endorsement closes the gray area, excluding coverage even in the event that there’s no charge made for those types of risks.

UNDERWRITING: Fireman’s Fund packages liquor liability with various other coverages or features. Restaurant packages can include general liability, property, crime, workers comp and auto. Monoline liquor liability policies are not available. Endorsements include per-location liquor liability aggregates and wine valuation at menu-selling price. Fireman’s Fund sets maximum liquor liability limits of $1 million for primary and $10 million for excess, without stated minimums for attachment points, and delivers follow-form excess. Deductibles vary by risk.

MINIMUM PREMIUM: None.

TARGET: Upscale restaurants, hotels and other hospitality risks where alcohol is served in association with providing food, rather than the other way around. The company avoids insuring night clubs, bars and taverns and other facilities where entertainment is the main attraction.

COVERAGE TERRITORY: All states.

CONTACT: Kathy Clark, products director for casualty; Fireman’s Fund Insurance Company, 777 San Marin Drive, Novato, CA.

Jacquelyn Connelly is IA senior editor.