LIQUOR LIABILITY COVERAGE
is designed for bars, restaurants, manufacturers, hotels, motels, package liquor stores or other places where liquor is sold, distributed, manufactured or served. It pays for the vicarious liability claims that result from allegations that the serving of alcohol to an individual resulted in that individual causing injury or damage to others or to that individual. Dram shop statutes establish the criteria for such suits and vary considerably by state. Liquor liability coverage fills the gap created by the liquor liability exclusion in general liability coverage forms that apply only to businesses directly involved in the sale, distribution, manufacturing or serving of alcoholic beverages.