Host Liquor on Homeowners - Just Curious

[txagt39]

I have a prospective client who owns a facility where wedding receiptions and such are frequently held. Their current agent told them all they need require from a leasee was a copy of their current homeowner's policy as proof they would have coverage for the liquor liability exposure at the event.

Since we write HO as well, I know that my primary carrier's policy will most definitely not cover an external event where liquor is served, we have to do a special event policy and I recommended that the facility be added as a named additional insured.

I'm just curious if anyone else out there has a HO policy that will extend the host liquor liability protection to a homeowner that would cover such an external event where alcohol is served just as a normal part of their HO coverage?

 

[passivesf]

i think that agent is due for an e&o claim

 

[Bertolinoins]

The agent is wrong. Have the event site refer them to you. Travelers has a nice wedding insurance program and newlyweds are great prospects that can we made into lifetime clients. They are combining households so it is a good time to combine insurance policies and sell them some cheap term to " look out for eachother". They buy a house, new policy + more term. Kids = 529's and more life ins. Life events will call them into action if you have any sales skill. Newleyweds are great prospects, use you in here to get multiple referrals.
- - - - - - - - - - - - - - - - - -
Travelers website is Wedding Insurance | Travelers Wedding Protector Plan

This coverage will also help you venue in case of cancellations... so he won't have listen to sob stories from cryingwomen in his office begging for their deposit back if something goes wrong... this solution alone should help you land his business.
their deposit

 

[avaloninsurance]

Oh my!!! I have been working in personal insurance for over 15 years and have NEVER seen where liquor liability is covered under a home insurance policy especially at a location that is not at the insured location. Some companies may offer an endorsement that can be added on to the homeowners policy, however most do not. Sounds like they need to require special events policy from the people leasing the facility. I believe that AIG (Chartis now???) offers this online without having any other coverage through them.

 

[Aram Fingal]

Not a chance.

I'm just curious if anyone else out there has a HO policy that will extend the host liquor liability protection to a homeowner that would cover such an external event where alcohol is served just as a normal part of their HO coverage?

 

[bobson]

Oh my!!! I have been working in personal insurance for over 15 years and have NEVER seen where liquor liability is covered under a home insurance policy especially at a location that is not at the insured location. Some companies may offer an endorsement that can be added on to the homeowners policy, however most do not. Sounds like they need to require special events policy from the people leasing the facility. I believe that AIG (Chartis now???) offers this online without having any other coverage through them.

Where is hosted-liquor excluded on an ISO HO policy? Where is it excluded at an event away from the premises?

The closest I can find is exclusion 4 under section II exclusions: "Insured's" Premises Not An "Insured Location".

But when you read the definition 6 (Insured location) little letter c. it states "Any premises used by you in connection with a premises described in a. and b. above;"

Wouldn't the reception hall qualify as a premises used in connection with a. residence premises?

Now I agree the HO policy would not provide any insurance for the reception hall itself.

Anyone else want to chime in?

 

[txagt39]

Where is hosted-liquor excluded on an ISO HO policy? Where is it excluded at an event away from the premises?

The closest I can find is exclusion 4 under section II exclusions: "Insured's" Premises Not An "Insured Location".

But when you read the definition 6 (Insured location) little letter c. it states "Any premises used by you in connection with a premises described in a. and b. above;"

Wouldn't the reception hall qualify as a premises used in connection with a. residence premises?

Now I agree the HO policy would not provide any insurance for the reception hall itself.

Anyone else want to chime in?

I did learn that some HO carriers will do an endorsement for off premise social occasions but it's not a given, it requires underwriter approval, additional premium, etc. If an underwriter has to evaluate the risk I assume they have the potential of saying no and I'm only guessing but I would venture to say that if alcohol will be served it might be a NO. My recommendation was and still is to get a Special Event policy by the event holder and name the venue as an additional insured. My client is the owner of the venue and as their risk manager I told them that would be my recommendation. Their prior agent is the one that told them an event holder's HO insurance would cover it. I thought he was in left field but hated to make that assumption since I can't speak on behalf of every HO policy out there. I think the prior agent was just either lazy or not concerned - as a result he's toast.
- - - - - - - - - - - - - - - - - -

i think that agent is due for an e&o claim

Overdue I'd say, when you write crap it goes around, sometimes Justice is slow but always swift. I try to do the right thing and it's not always going to be the cheapest way out. What good is insurance if it doesn't cover a disaster when you need it and I do not want an E&O claim. I took over the GL for the venue, needless to say this client cared and realized their prior agent was full of it. Unfortunately they went unprotected for quite some time, now they know and fortunately they didn't have any issues come up during that time. You would be surprised what agents tell folks at times.

 

[bobson]

I did learn that some HO carriers will do an endorsement for off premise social occasions but it's not a given, it requires underwriter approval, additional premium, etc. If an underwriter has to evaluate the risk I assume they have the potential of saying no and I'm only guessing but I would venture to say that if alcohol will be served it might be a NO. My recommendation was and still is to get a Special Event policy by the event holder and name the venue as an additional insured. My client is the owner of the venue and as their risk manager I told them that would be my recommendation. Their prior agent is the one that told them an event holder's HO insurance would cover it. I thought he was in left field but hated to make that assumption since I can't speak on behalf of every HO policy out there. I think the prior agent was just either lazy or not concerned - as a result he's toast.
- - - - - - - - - - - - - - - - - -

I agree with your recommendation to your policy holder. As the venue owner he wants the person renting the hall to provide a special event policy naming the venue owner as an additional insured.

I know one homeowners company in my market that offers a special event liability endorsement to the homeowners policy. They have no problem with liquor liability. The rates are built in for that.

I still believe the homeowner has liability coverage from his homeowners policy whether or not liquor is involved. Who hasn't hosted a party at their house and served liquor? I wouldn't insure my home with a company that wouldn't provide me with liability coverage for a party.

 

[txagt39]

I agree with your recommendation to your policy holder. As the venue owner he wants the person renting the hall to provide a special event policy naming the venue owner as an additional insured.

I know one homeowners company in my market that offers a special event liability endorsement to the homeowners policy. They have no problem with liquor liability. The rates are built in for that.

I still believe the homeowner has liability coverage from his homeowners policy whether or not liquor is involved. Who hasn't hosted a party at their house and served liquor? I wouldn't insure my home with a company that wouldn't provide me with liability coverage for a party.

My comments were regarding "Off Premise" events specifically.

 

[darcabre]

I'm a new agent, so feel free to disregard my ramblings. If I remember correctly the HO policy(at least in Florida) will cover "off site" events of a personal nature. I remember we spoke about weddings in class. However the company that sells or serves the liquor(catering company) would need their liquor liability.