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What is Liquor Liability Insurance and Does Your New Jersey Restaurant Need It?

December 27, 2022

What is Liquor Liability in New Jersey?

Put simply, liquor liability is liability for any damages caused as a result of alcohol consumption. For example, a customer has an alcoholic drink in your Park Ridge, New Jersey, restaurant and, on their way out, they stumble on the sidewalk and suffer multiple fractures in their wrist. Who is at fault? If the sidewalk is badly maintained then the city may be liable, but if the customer had too much to drink in your restaurant, then the liability could be yours.


What is Liquor Liability Insurance in New Jersey?

If a customer causes damage to property or injury to themselves or others after consuming alcohol, then their insurers will make a claim against the supplier of that alcohol. Liquor Liability Insurance provides financial coverage against such liquor liability claims.


Does your New Jersey Restaurant Need Liquor Liability Insurance?

If your New Jersey restaurant sells alcohol, yes, your New Jersey Restaurant needs liquor liability insurance.

If your New Jersey restaurant serves alcohol, yes, your New Jersey Restaurant needs liquor liability insurance.


What’s the Difference Between Selling and Serving Liquor?


• If a customer buys a cocktail in your Park Ridge, New Jersey, restaurant then your restaurant is selling liquor.

• If a customer comes into your Park Ridge, New Jersey, BYOB (bring your own bottle) restaurant with their own bottle of wine, which you open and pour for them, then your restaurant is serving liquor.

• If a customer brings their own wine and their own glass into your restaurant and they take care of themselves, your restaurant is neither selling nor serving but is allowing the consumption of alcohol on the restaurant premises.


In all three scenarios, your New Jersey restaurant needs liquor liability insurance. Our insurance agency in Park Ridge provides commercial restaurant insurance


Liquor liability insurance will protect your New Jersey restaurant if a customer or employee causes damage to property or injury to themselves or a third party. If it can be proved that your Park Ridge restaurant served alcohol to a customer under 21 or to a customer who was already intoxicated, you will be held liable.


Are all Liquor Liability Insurance Policies the Same?

Liquor liability insurance for bars and restaurants may be purchased annually, seasonally, or short-term. Contact us for a free review of your current liquor liability or commercial restaurant insurance policy and to talk about options


Does my New Jersey Restaurant Need More Than Liquor Liability Insurance?

You will need permits to sell or serve alcohol and in New Jersey permits are issued by individual municipalities—permitting rules in Park Ridge, Bergen County, NJ, may not be the same as the permitting rules in Edgewater Park, Burlington County, NJ. Wherever your restaurant is located a Vozza insurance agent can help you navigate your local licensing laws.


If you have questions regarding the insurance coverage needs for your New Jersey restaurant, talk to one or our independent insurance agents in Park Ridge, New Jersey. For more information on the best restaurant insurance coverage in New Jersey contact Vozza Agency.

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