Monday, May 18, 2015

The Top 10 Association Insurance Questions Continued!

Today we discuss question 3 of "The Top 10 Questions asked by Board Members and Community Managers Regarding HOA and Condo Association Insurance."

By: Brian J. Finnerty (CIC), Area Sr. Vice President, Arthur J. Gallagher Risk Management Services

Question 3:
Does my insurance provide coverage if we serve beer/wine/liquor at a community function?

Answer:
This question comes up mostly during pool season or the holidays when communities are contemplating having social gatherings.  In most cases the function is a BYOB style party.  In that case your General Liability typically provides what is called, “Host Liquor Liability”.  This simply states that as long as you are not manufacturing, selling, and or distributing alcohol then a claim that arises out of liquor liability would be covered.   There are some policies that also outline that if the event would require a liquor license then the host liquor liability will not be suitable.

The best thing to do is ask your agent what solution is best for you and your event.  We have plenty of clients that purchase liquor liability because they do have a cash bar at an event or host a party in a jurisdiction that requires a liquor license to be in force.  The other solution is to hire professional bartenders that carry their own liquor liability insurance.


Be sure to check back next week for the 4th installment!