Lisa Terrasi, Commercial Associate, explains when you need to obtain a liquor license policy.
The answer is generally no, unless you are hosting a party and charging for alcohol. Liquor liability policies provide coverage for any insured whose business is involved with the manufacturing, distribution, selling or serving of alcoholic beverages. Those policies are usually held by bars, restaurants, and nightclubs. An insured whose main business does not revolve around the exchange of alcohol doesn’t likely need a Liquor Liability Policy. Most General Liability Policies for Community Associations provide coverage for Host Liquor Liability, which provides coverage for bodily injury or property damage arising out of the serving of alcohol. If you plan on having a cash bar and will not be hiring an outside vendor to handle it, you should obtain a one day Special Events policy, and be sure to check that it includes Liquor Liability. As always, check for any exclusions with your broker.
