For many nonprofits, their main source of revenue is the money derived from hosting special events. Most events offer wine, beer or liquor, and it can be confusing to determine the right coverage to put in place.
In general terms, most insurance professionals recognize that if an entity is in the business of selling, distributing or manufacturing alcohol, then they must pursue commercial liquor coverage. With nonprofits, this can be a gray area and can also cause confusion. What happens if the price of the ticket for the event includes two free drinks? Can that be construed as selling alcohol?
A conservative answer to that is yes. Luckily, USLI can help address that exposure in a quick and easy way. Our Charities and Business Associations product was recently updated in most states to offer blanket commercial liquor coverage* for situations such as these, or when the nonprofit knows it will be selling alcohol for a fee. This can be added in conjunction with blanket special event coverage that is offered on our Preferred Package form. These coverages can be paired with our Nonprofit Directors and Officers/Employment Practices Liability form to truly provide a comprehensive policy.
Eligible classes include:
- Booster clubs
- Chambers of commerce
- Charities
- Fundraising foundations
- Professional trade associations
- Parent-teacher associations
- Professional trade associations
For any other nonprofit, we can offer commercial liquor through our Main Event product, which is available in most states. Ask your underwriter for more information.
*Currently not available on a blanket basis in AL, CA, HI, IA, IL, MN, MS, NY, and RI.
