What it does
BP 04 89 extends Business Liability to all bodily injury or property damage arising out of the selling, serving or furnishing of alcoholic beverages. ISO calls it the BOP version of the Commercial General Liability Liquor Liability Coverage Form. It has its own Each Common Cause limit and Liquor Liability Aggregate limit, separate from the BOP liability and medical expenses limit.
Key provisions (01 06 text)
- Most Section II exclusions do not apply to this coverage except expected or intended injury, workers compensation and employer's liability.
- Added exclusions: alcohol sold or served while a required license is not in effect, product liability other than intoxication-related liability, and injury for which other insurance applies unless that insurance responds to liquor liability.
Who needs it
Restaurants and bars in the business of selling alcohol. State dram shop laws make the server liable for injuries caused by intoxicated patrons.
Quoting and selling notes
- Confirm alcohol sales percentage (it drives BOP eligibility), hours, entertainment and security.
- Connecticut, Illinois and Utah use their own versions to reflect state dram shop limits.
