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What Insurance Does a Liquor Store Need?


As a liquor store owner, you have an inventory that can be stolen or broken. You need liquor store insurance that covers the risks that you face.

Liquor store insurance is a package of insurance coverages to protect your liquor store from unfortunate events such as theft, vandalism, fire, and a customer getting injured in your store.

Key insurances coverages for your privately-owned liquor store

Commercial general liability (CGL) insurance

CGL insurance is also known as “slip-and-fall insurance.” Just like its name, it protects your liquor store if a customer should slip and fall on your premises and get injured.

  • This policy can help protect your business against any claims of third-party bodily injury or property damage that occurs at your liquor.
  • Commercial general liability insurance generally covers medical fees, legal expenses, and settlements regardless of the outcome of a lawsuit by a customer against you.
  • Your CGL insurance policy should protect you from libel, slander, copyright infringement, and false advertising allegations.

Without commercial general liability insurance, you would be responsible for paying any liability costs out of your own pocket.

Ask your Western Financial Group business insurance expert about how much CGL insurance you need for your liquor store.

Western Financial Group has a partnership with the Alberta Liquor Store Association (ALSA) and British Columbia’s Alliance of Beverage Licensees (ABLE).

Equipment breakdown insurance

Equipment breakdown insurance coverage is included in almost every policy.

It’s important for a liquor store insurance policy because it will protect against mechanical and electrical breakdowns on equipment such as coolers, exhaust systems, and freezers.

If your liquor store is in a building that you own, Western will calculate the replacement cost of your building to ensure adequate coverage is provided with the correct amount of stock (beer, liquor, and mixes) and equipment (POS systems, shelving, and coolers) coverage needed to ensure your liquor store is protected with the proper limits of coverage.

Crime Insurance

Crime insurance provides coverage for events not covered by most property or liability insurance policies.

This type of coverage can protect your retail business from losses due to:

  • Employee fraudulent acts, for example: An employee forges your signature and withdraws money from your account
  • Theft of money
  • Counterfeit money or money orders
  • Depositors’ forgery
  • Credit card, debit, or automated teller card fraud

Liquor liability insurance

Liquor liability insurance would cover losses, damages, or other expenses arising from the injury or death of a person or damage to property where alcohol that you served, for example at a wine tasting event at your liquor outlet, to a customer and it’s deemed to be a contributing factor.

Cyber liability insurance

Does your liquor store any client data electronically? Do you take any online orders?

If you use computers for any purpose in your business, you could be at risk of a cyberattack or data breach.

If your computer system is hacked, cybercriminals can sell the information. If you don’t have cyber insurance, you will have to pay out of your pocket for the cost of restoring your system.

You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a breach.

Commercial property insurance

Commercial property insurance protects your liquor store and its contents. It can help keep you protected from property losses, such as theft, vandalism, fire, or a flood.

What if there’s heavy rain and the sewers back up and your business is flooded? You should consider adding sewer backup or overland flood coverage extensions, which standard business insurance policies typically do not cover.

Product liability insurance

Product liability insurance provides protection against claims alleging third-party property damage or bodily injury caused by a product you sell or distribute at your liquor store.

Damages covered by product liability are usually the result of a defect in the design, manufacturing, or marketing, such as an incorrect label or a lack of safety warnings.

Business Interruption Insurance

Business interruption insurance supports you when your liquor store can’t operate due to a covered loss.

There are many losses that can force your liquor store business to shut down. Some examples include:

  • Damage to your storefront from fire or vandalism
  • Damage to a neighboring business
  • A major reduction in revenue due to a client/supplier facing losses of their own
  • A disruption in your supply chain

Business interruption insurance can help with expenses such as:

  • Payroll
  • Rent
  • Utilities
  • Property taxes
  • Alarm monitoring
  • Relocation of your business

Commercial auto insurance: If you have a business car that you use for your liquor store operation, it needs commercial coverage as part of your insurance package. Your personal car or truck insurance usually won’t cover vehicles that your liquor store uses.

How much does liquor store insurance cost?

The cost of your insurance policy will depend on such factors as the size of your liquor store, the value of its contents, any past claims, and location.

At Western Financial Group, we are skilled insurance shoppers. As a top insurance broker, we work with Canada’s leading insurance companies to get you the right coverage to protect your liquor store at the right value for you.