Liquor Liability Exposure for Insured

We are concerned about liquor liability exposure. The insured is an Amvets hall and it sells liquor at meetings at cost. Can this exposure be excluded by adding CG 21 50, amendment of liquor liability exclusion? Does this sufficiently exclude the liquor liability exposure?

Ohio Subscriber

If it is your intention to delete the liquor liability coverage that the current CGL form offers, then yes, endorsement CG 21 50 will do that.

The standard CGL form does provide some liquor liability coverage since the exclusion applies only if the named insured is in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages. This exception to the exclusion would allow coverage for your insured since an Amvets hall obviously is not in the alcoholic beverage manufacturing or distribution business. However, CG 21 50 amends the liquor liability exclusion by adding that the exclusion also applies if the named insured serves or furnishes alcoholic beverages for a charge whether or not such activity requires a license or is for the purpose of financial gain or livelihood. So, the liquor liability exclusion would then apply in any situation, even a social gathering, when the insured serves alcoholic beverages for a charge.