On a Saturday night, Main Street in Manayunk is packed. Bars, brewpubs, restaurants with patios over the canal, and late-night spots draw crowds from across the city, especially when the weather is good or a big game is on. For the people who own those businesses, serving alcohol brings a specific kind of risk that a general business policy may not fully address.
Here are answers to questions we hear from Manayunk bar and restaurant owners about liquor liability insurance.
What is liquor liability insurance?
Liquor liability insurance is coverage designed for businesses that sell, serve or furnish alcohol. It is meant to respond when someone claims your business contributed to an injury or damage by serving alcohol, for example, a customer who was served while visibly intoxicated and then caused a crash or got into a fight. It usually helps with legal defense costs and covered damages, up to the policy limits and subject to its terms.
Doesn’t my general liability policy already cover that?
Usually not. Most commercial general liability policies contain a liquor liability exclusion for businesses that are in the business of selling or serving alcohol. That is why bars, restaurants, breweries and caterers typically add liquor liability as a separate policy or endorsement. If you are not sure what your policy says, look for the word “liquor” in the exclusions section, or ask your agent.
Why does this matter so much in Pennsylvania?
Pennsylvania’s Liquor Code prohibits serving alcohol to minors and to visibly intoxicated people. Licensees who break those rules can face citations from the Pennsylvania State Police Bureau of Liquor Control Enforcement and can also face lawsuits from people hurt as a result. Those claims can be serious, especially when a car crash is involved.
Does staff training help?
Yes. The Pennsylvania Liquor Control Board runs the Responsible Alcohol Management Program, known as RAMP, which trains owners, managers and servers on responsible service. You can find details on the PLCB website. Many insurers ask about RAMP certification and other training when they review a bar or restaurant. Training does not guarantee anything, but documented, consistent practices can matter both for safety and when insurers evaluate your business.
We are a BYOB restaurant. Do we need it?
Possibly. Philadelphia has many BYOB restaurants, and allowing customers to bring alcohol is not the same as selling it. Liability can still come up, though, and some policies treat BYOB differently from licensed service. Ask how your current policy handles customers’ own alcohol, and whether host liquor liability is included or available.
What else should a Main Street bar or restaurant review?
- Assault and battery. Some liquor and general liability policies limit or exclude fights. Find out what yours says.
- Flood. Main Street sits between the Schuylkill River and the Manayunk Canal, and the corridor saw serious flooding during the remnants of Hurricane Ida in 2021. Standard commercial property policies generally exclude flood. FloodSmart explains how commercial flood insurance works.
- Business income. If a flood or fire closes you for weeks, business income coverage may help replace lost income, depending on the cause and your policy.
- Workers’ compensation. Pennsylvania generally requires employers to carry it, and restaurant kitchens have plenty of burns, cuts and slips.
- Outdoor seating and sidewalk cafés. Make sure your policy reflects any patio, deck or sidewalk area you use.
- Events and private parties. Hosting a pub crawl stop, a rehearsal dinner or a watch party can change your exposure.
How much liquor liability coverage do we need?
There is no single answer. Your landlord, your lease and any event partners may require certain limits. Your hours, how much of your sales come from alcohol, your crowd size and whether you have entertainment or a dance floor all affect what makes sense. An agent can help you compare options from different carriers.
Talk with a neighbor
Peak Insurance is based just up the hill in Roxborough and works with 60+ carriers, so we can shop liquor liability and the rest of your business coverage in one place. Visit our Manayunk insurance page or our business insurance page, call (855) 449-8552, or send us a message.
