A round of golf often goes hand in hand with a few drinks at the clubhouse or on the course, but serving alcohol at a golf course introduces serious liability concerns. Intoxicated guests can cause property damage, get into altercations, or leave the premises and drive under the influence, leading to potential lawsuits or worse. Without the right insurance, golf course operators may face significant financial and legal consequences.
Insurance agents play a critical role in helping their clients understand whether golf course liability insurance provides sufficient protection against liquor-related claims or if additional liquor liability coverage is necessary.
How Alcohol Increases Golf Course Risks
Golf courses provide a social setting where patrons often consume alcohol, introducing potential liabilities. Over-serving patrons is a common risk, as staff may not always recognize when guests have reached their limit.
An intoxicated guest could become involved in a dispute that escalates into property damage or bodily injury claims. Even more concerning is the risk of a drunk driving accident after a guest leaves the premises. If a golf course is found to have served alcohol irresponsibly, it could face lawsuits and fines under state dram shop laws.
In one case, an Ohio country club agreed to a $5 million settlement after being sued for over-serving alcohol to a guest who later caused a fatal drunk driving accident. The lawsuit alleged that the golf course failed to follow responsible service practices, ultimately leading to tragic consequences. Such cases underscore the severe risks that golf courses face when serving alcohol and demonstrate the importance of securing proper insurance coverage and taking steps to mitigate risks.
What Golf Course Liability Insurance Covers
Golf course liability insurance provides broad protection for general risks, such as guest injuries, property damage, and lawsuits arising from on-premises accidents. If a guest slips and falls or a piece of equipment causes damage, this policy typically provides coverage.
However, liquor-related incidents may not be included in a standard policy. Many general liability policies exclude claims related to alcohol service, meaning golf courses that serve alcohol could be left exposed in the event of an incident.
When Golf Courses Need Liquor Liability Insurance
For courses that serve alcohol at a clubhouse bar, through on-course beverage carts, or during events, liquor liability insurance is a necessary safeguard. This coverage helps protect golf course operators from lawsuits resulting from intoxicated guests, providing financial protection for legal fees, settlements, and damages.
Additionally, state liquor laws can impact liability. Some states have stricter dram shop laws, which hold businesses accountable for serving alcohol to visibly intoxicated individuals. Insurance agents should help their clients assess their liquor-related exposures, including how alcohol is served, whether staff is properly trained, and whether past claims have occurred.
How Agents Can Structure the Right Coverage for Clients
To ensure protection for their clients, insurance agents should recommend a combination of golf course liability insurance and liquor liability coverage. A golf course with a full-service bar or frequent large events may need more comprehensive protection than one that only serves alcohol occasionally. Reviewing state laws and claims history is also important, as previous incidents can impact policy terms and pricing.
With increased legal scrutiny surrounding alcohol service — and some areas even considering legislation to allow patrons to bring their own alcohol onto golf courses — golf courses cannot afford to overlook liquor liability coverage. By structuring the right insurance package, agents can help their clients avoid costly lawsuits and protect their businesses from unnecessary financial risk.
Secure the Right Coverage Today
Golf course operators need specialized coverage to address liquor-related hazards. Insurance agents should take proactive steps to ensure their clients have the right protection before an incident occurs. Visit T2 Green Insurance to explore tailored coverage solutions.
About T2 Green Insurance
T2 Green Insurance provides comprehensive insurance that is customized to your club, resort, or golf management company, from industry professionals whose sole focus is insuring this class. We are dedicated to providing you with innovative products, underwriting expertise, and exceptional results so that your insurance needs are covered with confidence. Reach us at 844-223-9005 with any questions or so we can begin tailoring a package that works best for your club.
