One or more insurance policies protect most golf courses. Standard options include tee-to-green insurance, commercial general liability insurance, and other types of golf insurance.
But most owners are unaware that they need to have protection against liquor liability or claims arising from damage and injuries related to the selling of liquor. And since most golf courses offer alcoholic beverages to their patrons, having liquor liability insurance is essential.
What is Liquor Liability Insurance?
Liquor liability is a type of insurance that covers liquor-related claims excluded under commercial general liability insurance (CGL). It covers claims that some may file against golf course owners if a guest under the influence of liquor causes injury or property damage to a third party.
Liquor liability insurance covers both bodily injury and damage to property. Golf course owners may be held liable for selling or serving alcoholic beverages to the guilty party, which is why they need liquor liability.
Many large insurance firms bundle liquor liability with business owner’s insurance or commercial package policies. But in some cases, golf course owners may need to obtain this specific type of insurance from a specialist insurance company.
Why is Liquor Liability Necessary?
Golf courses and other liquor establishments have no control over their customers after they leave the premises. But if someone consumed alcohol at the golf course, the owners might face liability for injuries or damage that the inebriated guest subsequently causes. So while golf course owners aren’t directly responsible for causing the incident, merely making liquor available to the patrons could result in legal liability.
Essential Components of Liquor Liability Insurance
Not all liquor liability policies offer the same range of coverages. Golf course owners looking for the appropriate insurance should be aware of the following limitations that some policies may have:
Assault and Battery: Some liquor liability insurance policies exclude coverage for assault and battery. If a guest at the golf course gets into a fight while drunk, your client may not be protected if the policy has this specific exclusion.
Defense Costs: Most liquor liability policies cover defense costs as standard. Legal expenses such as attorney fees do not count against the policy limits. However, some policies do count these costs against the policy limit.
Occurrence: Liquor liability policies generally cover injuries that occur within the policy period, regardless of when someone filed the claim. However, some cover only claims made during the policy period, which is a much more restrictive arrangement.
Mental Injuries: Claims for non-physical injuries such as mental anguish, stress, and psychological harm may or may not have coverage, depending on the policy.
Commercial General Liability and Liquor Liability Insurance
Does commercial general liability insurance negate the need for liquor liability insurance? Not necessarily. CGL already protected most golf courses. But these policies usually cover claims such as bodily injury, property damage, and occurrence-related personal and advertising injuries. Most exclude liquor liability, specifically as they relate to the following:
- Causing or contributing to the intoxication of a third party
- Serving alcohol to minors
- Serving alcohol to people that are already intoxicated
- Violating statutes, ordinances, or regulations pertaining to the sale and serving of alcohol
CGL insurance typically does not cover claims related to these acts. So if your client wishes to have protection against potential claims of these natures, they should get liquor liability insurance.
About T2 Green Insurance
T2Green Insurance provides the best customized and comprehensive protection for your club, resort, or golf management business. Our niche expertise and sole focus is insuring this class, while our industry professionals are dedicated to providing exceptional results so that you can feel confident with your coverage. T2Green offers specialized coverage options that are unique in the industry. With our exclusive program unlike anything else on the market, you can feel peace of mind with protection that is tailored to your club’s unique needs. T2Green is driven by innovation and responsiveness in both coverage solutions and customer service. We understand the challenges that are presented in varying locations and seasons to write policies for clubs from coast to coast and everywhere in between so you can operate with confidence, no matter what conditions arise. Reach us at 844-223-9005 with any questions or so we can begin tailoring a package that works best for your club.
