A family-run Peruvian restaurant in Kissimmee adds a beer and wine license so customers can order a cerveza with their ceviche. The owner assumes the general liability policy covers whatever happens, since beer and wine are a small part of the business. Months later, a customer who had several beers at a birthday dinner causes a crash on US 192, and the injured driver’s attorney sends a letter to the restaurant. The owner’s general liability carrier points to the liquor liability exclusion, and the restaurant has no other coverage.
Beer and Wine Count as Alcohol
Many restaurant owners believe liquor liability is only for bars or for places that serve hard liquor. In Florida, a restaurant serving beer and wine for consumption on the premises usually holds a 2COP license, and from an insurance standpoint it is in the business of selling alcohol just as much as a full bar. Commercial general liability policies exclude liquor liability for businesses that sell, serve or furnish alcoholic beverages, and that exclusion does not distinguish between a bottle of wine and a cocktail. If the restaurant sells beer or wine, it needs liquor liability coverage.
How Florida Law Applies
Florida’s dram shop statute, section 768.125, is narrower than in many states. Serving an adult does not by itself make a business liable for what that person does afterward. Liability can arise when a business willfully and unlawfully serves someone under 21, or knowingly serves a person who is habitually addicted to alcohol. For a beer and wine restaurant, the underage provision is the bigger concern. A family dinner where a teenager is handed a beer by a relative at the table, or a server who does not check identification for a young-looking customer, is how many of these claims begin. Our article on ID verification and underage service covers that exposure in more detail.
Even when the statute limits liability, the restaurant still has to defend the lawsuit. Defense costs are often the largest part of an alcohol claim, and without liquor liability coverage, the restaurant pays them itself.
The Least Expensive Way to Get Covered
For restaurants where beer and wine are a small share of sales, liquor liability is usually one of the least expensive coverages on the program. Many carriers that write restaurant packages or business owners policies can add it as an endorsement, rated on beer and wine receipts. That keeps general liability and liquor liability with the same carrier, which avoids arguments between two companies over which policy should respond.
The endorsement route works best for restaurants that close at a normal hour, do not have entertainment and keep alcohol a clear secondary part of the business. A restaurant that adds live music, stays open late or starts doing more of its business at the bar may need a standalone policy instead. Our article on what liquor liability costs in Florida explains how those factors affect price.
What Changes When the Business Changes
Restaurants evolve. A place that opened as a quiet family restaurant may add a happy hour, a weekend band or a patio that turns into a gathering spot. Each of these changes the alcohol exposure, and the policy should be updated when it happens, not at the next renewal. If a restaurant moves from a beer and wine license to a full liquor license, such as the special restaurant license that requires most revenue to come from food, the liquor liability rating changes as well.
Catering and off-site events are another common gap. Coverage written for the restaurant’s address may not follow beer and wine served at a client’s event. If the restaurant caters, read our article on catering and off-premises alcohol service.
Simple Practices That Help
Training every server on checking identification, documenting refusals and recognizing visible intoxication protects both the license and the insurance. Posting a clear policy that alcohol is served only to customers 21 and older, with valid identification, sets expectations at family gatherings. Keeping alcohol behind the counter rather than in a self-service cooler and logging any incident involving an intoxicated customer gives the restaurant a record if a claim arrives later.
Worth Confirming on Your Restaurant’s Policy
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Does your general liability policy exclude liquor liability, and do you have separate coverage?
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Is liquor liability rated on your actual beer and wine sales?
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Does the coverage include assault and battery, or is it excluded?
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Does the policy cover beer and wine served at catered or off-site events?
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Have you told your agent about any new entertainment, later hours or patio service?
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Are your servers trained to check identification, and do you keep a refusal log?
This article is general information and not legal advice. Florida statutes and licensing rules can change; consult the Division of Alcoholic Beverages and Tobacco or qualified counsel about your license.
Talk to Prestige Insurance Group
We insure restaurants across Florida, from family places that serve beer and wine to full-service dining rooms, and we can usually add liquor liability to the restaurant program in a single policy. You can learn more on our restaurant insurance page.
Call the office nearest you. Se habla español.
Orlando: 407-993-2331
Miami: 305-969-8776
Stuart: 772-247-3788
Prestige Insurance Group, License L057894
