What does the liquor liability exclusion apply to?

The liquor liability exclusion specifically targets firms that are involved in the business of making, selling, or serving alcoholic beverages. This exclusion is intended to limit or avoid coverage for claims arising from incidents related to the distribution of alcohol, which can include injuries or damages caused by intoxicated patrons.

For establishments like bars, restaurants, or breweries that serve alcohol as part of their operations, the exclusion acknowledges the inherent risks associated with alcohol consumption. These businesses may face higher liability exposures due to potential incidents such as drunk driving, fights, or other disturbances that can arise from intoxicated customers.

Establishments that do not engage in the handling of alcoholic beverages, such as those that serve only non-alcoholic drinks or products, would not be subject to this exclusion and therefore would have different coverage considerations. Similarly, the exclusion does not extend to all businesses serving beverages, only those specifically in the alcohol industry. Additionally, the exclusion applies broadly and is not limited to major corporations, as smaller entities and independent establishments in the alcohol sector are also affected.