Liquor Liability Coverage is not just for restaurants and bars: events in private homes or members of an HOA (Homeowners Association) as well as the Homeowners Association itself can also apply to get their events covered for parties hosted in the HOA’s common area. With varying coverage available, it is always a good idea to ensure you are choosing the right one for the right setting.

Many individuals and their HOAs are concerned with whether or not coverage is available or encouraged when alcohol is served during a party. One would think that if a private homeowner is not in the business of selling alcohol they wouldn’t need the coverage. Despite common thought, coverage is not only available but encouraged. If a homeowner/member of an HOA hosts an event on HOA common grounds, the association should always verify if they are planning on serving alcohol. If the host is planning on serving alcohol, the HOA and Management Company should always require the homeowner/member to purchase a Special Event Insurance policy with Liquor Liability coverage, in addition to Commercial General Liability coverage. This policy should name the HOA as additional insured for both Liquor Liability and General Liability coverage.

If an HOA is the one hosting a party for their homeowner/members and is serving alcohol, the most important question for a Community Manager to ask is, will they be charging for alcoholic beverages? If the HOA is not charging for the alcoholic beverage, then there is no need to obtain extra Liquor Liability coverage on a Special Event Insurance policy because most Commercial Package Insurance policies include Host Liquor Liability coverage. However, if the HOA hosts an event for homeowners/members and charges for alcoholic beverages, then Host Liquor Liability coverage on their Package Policy no longer applies because the HOA is now technically profiting from the charge for alcohol. In this situation, the HOA should purchase a Special Event policy that offers Liquor Liability coverage.

Of course, you should check to make sure if your HOA’s Package policy actually has Host Liquor Liability coverage in the first place. That is why trying to act alone in managing your insurance plans can be frustrating and confusing. If you lack the experience, seeking insurance alone is probably not a good idea. Leave it to the professionals who have spent years in the business to give you a hand.

So now you are probably wondering where to even start looking for Liquor Liability coverage because, quite frankly, most people do not even know it exists for homeowners or Community Associations. Trying to figure out which insurance plan is best for you is exhausting, especially since there are countless plans out there all offering you different coverage at varying prices. That is why businesses such as O’Kane & Tegay exist. Being a San Francisco based, family run company, O’Kane & Tegay is extremely good at helping others find the best possible insurance plan for their needs. O’Kane & Tegay can clear up the confusion and take some stress out of your life by ensuring the next time you host an event you will not suffer the consequences of irresponsible drinking. You can now relax and enjoy your event as much as your guests!

“Legal Disclaimer. Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.”