What it does
CG 03 05 is the deductible endorsement for the Liquor Liability Coverage Part. The insurer pays damages above the scheduled deductible, may advance the deductible to settle a claim, and is reimbursed by the insured.
Who needs it
Liquor licensees accepting a deductible to reduce liquor premium.
Key provisions and limits
- Works like CG 03 00 but on the liquor coverage part.
Quoting and selling notes
- CG 03 05 01 96 as the current multistate edition.
- Underwriters rate liquor exposure on alcohol receipts and look at hours, entertainment, security, ID checks and server training; dram shop laws vary widely by state, which drives limits and pricing.
- A liquor deductible shifts small dram shop claims to the insured; check the client can fund it and that any lease or license requirements do not prohibit deductibles.
