Any establishment that sells or serves liquor is liable for a claim if someone gets hurts or injured or if property is damaged due to alcohol consumption. However, often caterers forget or forgo liquor liability insurance. If your catering company serves alcohol at events, your company is liable as well.
Often times caterers supply the alcohol that is to be poured and consumed at an event via a third party, most often a liquor store. However, your employees are pouring and serving the cocktails, which means the catering company is responsible for the consumption of alcohol at events where it is served. For monetary reason, or from lack of understanding, too often caterers do not have any or enough liquor liability coverage.
We like to think that the person who has consumed too much should be responsible. However, according to the law, this is not the way it works. Those who serve, sell and distribute the liquor are responsible.
Liability claims made to a caterer as a result of damages or injuries caused by liquor consumption can be extremely costly. In fact, suites can be for both civil and criminal damages, depending on the claim.
If you own a catering business you need liquor liability insurance, not only for protection against liability, but also as a show of good business for prospective customers. For more information on insurance that protects your business against loss or damages as a result of claims against your business, contact TriState Business Insurance.