This exclusion applies only if the named insured is in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages.
Any business that has a connection to the alcoholic beverages industry has a need for specialized coverage for liquor-related incidents and provides coverage for liquor liability imposed on an insured for incidents arising out of the sale, furnishing, or serving of any alcoholic beverage. The liquor liability policy picks up coverage excluded by the commercial general liability policy; that policy specifically eliminates coverage for incidents arising out of the sale, service, or furnishing of alcoholic beverages.
And of course, liquor liability insurance is not a substitute for other liability insurance. An insured in the liquor business also needs all the other liability coverage necessary to businesses generally, such as, premises and operations liability coverage and products liability insurance.
General Liability Policies Exclude Liquor Liability
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