PA Dram Shop Law Liquor Liability Insurance Kyle

PA Dram Shop Law & Liquor Liability Insurance ______________________________ Kyle Rheiner, Insurance Producer Strickler Insurance Agency, Lebanon PA www. Craft. Brewing. Insurance. com

Acknowledgement _____________________________ We would like to thank Kyle for his time and providing information regarding his experience in this field. All opinions, conclusions and/or recommendations expressed herein are those of the presenter and do not necessarily reflect the views of SBA.

Overview PA Dram Shop Law Liquor Liability Insurance Host Liquor Liability Lawsuits & Insurance Claims Education & Training

Pennsylvania Dram Shop Law The name “Dram Shop” comes from England, where gin was once sold by the spoonful, or “Dram. ” The PA Dram Shop Law makes it unlawful to sell, furnish or give alcohol to ● any minor, ● any person visibly intoxicated, ● any insane person, ● any habitual drunkard or any person of known intemperate habits.

Pennsylvania Dram Shop Law The law may apply when the server has committed other liquor violations, such as serving alcohol to a minor, serving alcohol after hours, or serving without a license. In that case, the business or individual who served alcohol illegally may be criminally charged for the violation, as well as sued for financial damages by the victims of the person they allowed to become intoxicated.

Liquor Liability Insurance - What is it? Coverage for damages resulting from the serving, sale or distribution of alcoholic beverages.

Liquor Liability Insurance - Who Needs it? Any business or individual in the business of: ● Manufacturing ● Selling ● Furnishing Businesses of all kinds can have a liquor liability exposure if they: ● Host a party for employees, clients, vendors, etc. that makes alcoholic beverages available. ● Gift alcoholic beverages to clients, vendors or employees at holidays or special occasions. ● Sponsor an offsite trip or excursion that includes the consumption of alcoholic beverages

Liquor Liability Insurance Most often, the Pennsylvania Dram Shop law is used after an intoxicated person causes a serious auto accident. It’s often a part of a larger lawsuit filed against the driver himself or herself. A Dram Shop lawsuit doesn’t have to be an auto accident — if a bar serves a visibly intoxicated person who then starts a fistfight and seriously injures another patron, that patron could sue the bar under the dram shop law.

Liquor Liability Insurance As might be expected, a good deal of alcohol-related liability claims filed against bars, taverns, and restaurants are a result of liquor-induced fights or altercations. In fact, the mere act of an employee escorting an unruly patron to the exit is frequently all that is necessary to trigger an assault and battery allegation. Therefore, assault and battery coverage should be included in your liquor liability policy. Assault & Battery (typically excluded on a Liquor Policy) ○ Buy this coverage back for additional premium Litigation costs, including the fees to retain an attorney and court costs are covered under a liquor liability policy.

HOST Liquor Liability Insurance Pennsylvania’s Dram Shop law applies not only to businesses that serve alcohol, like bars and restaurants, but also to those who host private events. Liability for bodily injury (BI) or property damage (PD) arising out of the serving or distribution of alcoholic beverages by a party not engaged in producing or serving alcohol. Example: Caterers and those “hosting” events. Host liquor liability exposures are insurable under standard general liability policies. - Homeowners Insurance Includes this. BYOB included unless excluded Lately an amendment has been added to policies to amend Host Liquor Coverage - Read the exclusions! Not all policies are the same!

Lawsuits In order to successfully sue under the dram shop law, you must be able to prove that: 1. An employee or “agent” of an establishment served alcohol to someone at a time that person was visibly intoxicated. Whether someone is “visibly intoxicated” depends not on blood-alcohol content or number or drinks, but rather on apparent signs of intoxication like bloodshot eyes, slurred speech and staggering. In some cases, visible intoxication may be proven with strong circumstantial evidence, like blood-alcohol measures or a guilty plea to a DUI; and, 2. The business or host’s decision to serve alcohol to the visibly intoxicated person directly led to the injuries.

Lawsuits Examples include the following: ● A lawsuit by a person injured in a fight started by someone who was served while visibly intoxicated ● A lawsuit filed by someone who was injured by an automobile accident caused by a driver who was served as a minor or while visibly intoxicated; and ● A lawsuit by the drunk person himself who was injured after being served as a minor or visibly intoxicated (like running his car off the road, getting hit as a pedestrian or falling down and sustaining injury).

More Claims Examples ● A Six Pack shop that is sued by parents of minors who injure themselves performing backyard stunts after consuming malt beverages it sold to them. ● A hotel lounge that is sued by a guest who is injured by an intoxicated person that knocks them down while exiting the bar area. ● A sports bar that is sued by a customer who is injured by two intoxicated patrons that get into a fight over a football game. ● A restaurant owner who is sued by the family of a woman killed by a drunk driver that had visited the restaurant during happy hour.

Education & Training RAMP Training: (Responsible Alcohol Management Program) ● $25 Online ● Free for owners and managers ● Goal is to identify intoxicated persons Other Steps: ● Proper Glassware (sizes per ABV) ● Limits on consumption ● Food, Water, Time ● Cab / Uber / Lyft ● Get Management Involved

Questions? ______________________________ Kyle C. Rheiner 610 -217 -8685 kyle@craftbrewinginsurance. com Strickler Insurance Agency - Lebanon PA www. craftbrewinginsurance. com