Annual Coverage for Businesses and Nonprofits with Incidental Alcohol Exposures

Hospitality and Liquor
// April 28, 2016
Reading Time: 3 minutes


Art galleries periodically hold wine and cheese openings to feature new artists. Social service organizations hold multiple fundraising “beef and beer” events to promote their cause and gain new recruits. Condominium associations hold regular board meetings followed by a wine reception.

Many businesses and nonprofit organizations that are not in the “liquor business” use these types of social events with alcohol to market their organizations.

All of these organizations have a liquor liability exposure for negligent service of alcohol if they serve an underage patron or a patron who is intoxicated. If that person subsequently causes a car accident, the organization could be held responsible to the accident victim for the negligent service. Just for using alcohol as an incidental part of its marketing, any organization or business could endanger its very existence.

For several years, USLI has provided coverage for these types of events through our Special Events policies, which require scheduled details of individual events. The new Annual Host Liquor product provides liquor liability coverage for a full year without individual event underwriting, as long as the risk meets the following criteria:

  • The applicant cannot be in the business of selling or serving alcohol and cannot have a license or permit to sell alcohol
  • The applicant must have a minimum of five events and no more than twenty-four events annually
  • No event can have more than 150 attendees
  • All events must occur in the same state (but not at the same location)
  • Events must meet USLI’s Tier I special event criteria, including events such as cocktail parties, anniversary parties, banquets, beef and beers, holiday parties, monthly board meetings and picnics
  • More hazardous events, such as athletic events, concerts, motor vehicle events or festivals are ineligible for the Annual Host product

If an applicant has one or more ineligible events but the remainder of the events qualifies, we can consider the ineligible event(s) as a separate special event while the qualifying events are grouped within the Annual Host Liquor product.

The Annual Host Liquor product also offers the following enhancements:

  • Assault or battery coverage included at no additional premium
  • Property owner can be included as an additional insured for $50
  • Blanket additional insured for multiple property owners can be added for $150
  • No liquor liability deductible

Our new product streamlines the submission process for applicants with incidental alcohol-related exposures. For qualifying applicants, a simple online, telephone or paper submission can be quoted and bound quickly for an annual term without scheduling individual events. There are no audits or inspections, and your customer is covered for a full year’s worth of events (up to 24). Please contact your Hospitality and Liquor Lines underwriter for more information or a quote.

Download marketing materials for the Annual Host product >>

As always, thank you for your support and business.

Karen FordContact Karen Ford
Team Leader, Second VP | Hospitality and Liquor Lines | 888-523-5545, Ext. 2391

Jeff EstabrookWritten by Jeff Estabrook
March 3, 2016