Which type of business would be subject to the liquor liability exclusion?

The liquor liability exclusion applies specifically to businesses that are involved in the making, selling, or serving of alcoholic beverages. Such establishments inherently take on the increased risk associated with the alcohol they serve. This is due to the potential liability that can arise from serving alcohol, such as incidents of intoxication resulting in harm to others, or damage caused by a patron under the influence.

Businesses that do not serve alcohol, such as restaurants without a liquor license or entertainment venues that do not sell alcohol, typically do not fall under this exclusion, as they are not engaged in activities that create the same risk profile. Event organizers also may not necessarily face liquor liability, particularly if alcohol service is not part of their operations or if they are simply facilitating an event without direct involvement in the sale or service of alcohol. Therefore, firms directly involved in the alcoholic beverage industry are the ones most likely to be subject to liquor liability exclusions.