1. Forms
2. BP
3. BP-71-11

What the Form Is

The form BP 71 11 05 16 was a proprietary insurance endorsement, likely used by specific carriers such as UFG Insurance, designed to address liquor liability exposures for establishments with a "Bring Your Own Alcohol" (BYOA) or "Bring Your Own Bottle" (BYOB) policy. As an endorsement, it would have modified the standard Businessowners Policy (BOP) to provide coverage for bodily injury or property damage arising from the serving or consumption of alcoholic beverages brought onto the premises by patrons, even if the establishment itself did not sell alcohol. This form is now obsolete, having been replaced by BP 14 89 07 13.

Classes of Business It Applies To

This endorsement would have been applicable to a range of businesses that permit patrons to bring their own alcoholic beverages, such as:

• Restaurants (BYOB or BYOA)
• Catering halls or event spaces that allow outside alcohol
• Art studios or cooking class venues offering BYOB nights
• Private clubs or social organizations with BYOA policies

For example, a small restaurant that doesn't have a liquor license but allows diners to bring their own wine would have needed this type of endorsement to cover potential liabilities, like a patron over-consuming their own alcohol and causing an accident.

Special Considerations

Key considerations for this form, and for BYOA liquor liability in general, include:

• Obsolete Form: This specific form, BP 71 11 05 16, has been replaced. Policies should reflect the current applicable endorsement, BP 14 89 07 13.
• Proprietary Nature: Being a proprietary form, its terms and conditions might have varied from industry-standard forms.
• Coverage Scope: The replacement form, BP 14 89 07 13, may offer broader coverage as the search result indicated that a Locations Schedule is not part of the new form, which could result in a broadening of coverage.
• Regulatory Compliance: Businesses with BYOA policies must still comply with local and state laws regarding alcohol consumption, even if they don't sell it. This endorsement would not cover illegal acts.
• Control Measures: The insured would typically be expected to have reasonable control measures in place, such as monitoring consumption, preventing service to intoxicated persons (even if it's their own alcohol), and ensuring patrons are of legal drinking age.

Key Information for Agents and Underwriters

For agents and underwriters, understanding the nuances of BYOA liquor liability is crucial:

• Verification of Current Forms: Agents should ensure clients with BYOA exposures have current and appropriate liquor liability coverage, noting that BP 71 11 05 16 is outdated.
• Risk Assessment: Underwriters would have assessed the specific risks of a BYOA establishment, including:
  • The type of establishment and its typical clientele.
  • Hours of operation, especially late-night hours.
  • Staff training in responsible alcohol service (even for BYOA).
  • The establishment's policies regarding intoxicated patrons.
  • Any history of alcohol-related incidents.
• Pricing: Pricing for BYOA liquor liability would depend on the perceived risk, the limits of liability requested, and the nature of the business.
• Coverage Gaps: Without a specific liquor liability endorsement like this one (or its replacement), a standard BOP would typically exclude coverage for liquor-related claims, creating a significant coverage gap for BYOA establishments.
• Transition to Replacement Form: When this form was active, a key underwriting consideration upon its replacement would have been ensuring a smooth transition to BP 14 89 07 13 for existing policyholders to maintain appropriate coverage.