1. Forms
2. BP
3. BP-14-89

What the form is

The BP 14 89 Liquor Liability Coverage – Bring Your Own Alcohol Establishments is an endorsement to the ISO Businessowners Policy (BOP). Its primary purpose is to provide liability coverage for bodily injury or property damage arising out of the selling, serving, or furnishing of alcoholic beverages by an insured to any person who brings alcoholic beverages onto the insured's premises. This endorsement is specifically designed for businesses that do not sell alcohol themselves but allow customers to bring and consume their own alcohol on-site (often referred to as BYOA or BYOB establishments). It modifies the standard liquor liability exclusion typically found in a BOP.

Classes of business it applies to

This endorsement is relevant for a variety of businesses that have a BYOB/BYOA model. Examples include:

• Restaurants that do not have a liquor license but allow patrons to bring their own wine or beer.
• Art studios or cooking class venues that permit attendees to bring alcoholic beverages to enjoy during sessions.
• Event spaces or party rooms that are rented out for private functions where guests might bring their own alcohol.
• Certain recreational facilities or clubs where members or guests can bring their own alcoholic drinks.

For instance, a small neighborhood bistro that allows diners to bring a bottle of wine for a corkage fee would be a typical candidate for this endorsement.

Special considerations

There are several important points to consider when using this form:

• Distinction from standard liquor liability: This form is specifically for BYOA situations and should not be confused with broader liquor liability coverage (like form BP 04 89) needed by establishments that sell alcohol.
• Fees are not a factor: The coverage applies whether or not the insured charges a fee (e.g., corkage fee, cover charge) for allowing alcohol on the premises.
• Compliance with local laws: The insured must still comply with all local and state laws and ordinances regarding the consumption of alcohol on their premises, including age verification and not serving obviously intoxicated persons, even if the alcohol is patron-supplied.
• Replacement of other forms: The BP 14 89 07 13 endorsement replaced the previous proprietary form BP 71 11 05 16.

A key consideration is that even if an establishment doesn't sell alcohol, allowing its consumption on premises creates a liability exposure that this endorsement aims to address.

Key information for agents and underwriters

Agents and underwriters should focus on the following when dealing with this endorsement:

• Risk Assessment: Evaluate the establishment's controls for monitoring alcohol consumption. This includes staff training on recognizing intoxication, policies for cutting off consumption if necessary, and procedures for handling intoxicated patrons. The type of establishment, its typical clientele, hours of operation, and whether food service is primary are crucial risk factors.
• Underwriting Guidelines: Underwriters will want to see evidence of responsible business practices. This might include written policies regarding BYOA, any server training programs (even if informal), and a claims history. The absence of a locations schedule in the form might result in a broadening of coverage that needs to be assessed.
• Pricing: The premium for this endorsement will depend on the assessed risk, the limits of liability chosen, the nature and volume of the BYOA activity, and the specific characteristics of the insured business.
• Coverage Scope: It's important for agents to explain to the insured what is and isn't covered. This endorsement addresses a specific liquor liability exposure; it does not replace the need for adequate general liability coverage. Discuss potential coverage gaps and whether higher limits or an umbrella policy might be prudent.