General Liability Policies Exclude Liquor Liability

Commercial general liability policies usually contain a liquor liability exclusion, eliminating recovery under the policy for liability arising through the sale or furnishing of liquor.

Under the current general liability policy, the exclusion eliminates coverage for insureds in the business of manufacturing, distributing, selling, or serving alcoholic beverages, or if not in the business, as an owner or lessor of premises used for such purposes if liability is imposed by violation of a statute or regulation.

Under the current policy language, there is no change in the acts that trigger the exclusion: coverage is eliminated if the insured causes or contributes to the intoxication of any person; furnishes liquor to a minor or a person under the influence of alcohol; or if liability is assessed through statute.  The exclusion applies only if the insured

1. manufactures, sells, or distributes alcoholic beverages
2. serves liquor for a charge, regardless of whether or not the activity requires a license or is for the purpose of financial gain, or
3. serves liquor without charge, if a license is required for such an activity.