Cocktails to Go: A Simple Insurance Recipe for Restaurants
New Jersey’s cocktails-to-go law is a win for restaurant operators, offering greater flexibility, another way to serve customers and an additional opportunity to generate revenue.
As restaurants begin taking advantage of the new law, it is also a good time to review insurance coverage and make sure it reflects any changes to the operation.
A Simple Insurance Recipe
1 part liquor liability review
Make sure your insurance broker understands that cocktails may now be sold for off-premises consumption or delivery. Confirm how your current liquor liability policy addresses this exposure and whether any changes to your coverage are needed.
1 part third-party delivery review
If you use Uber Eats, DoorDash, or another third-party delivery service, review who is responsible for delivery, age and ID verification, and liability if an incident occurs. It is also important to understand what insurance coverage the delivery provider carries.
1 part auto coverage check
If your own employees will make deliveries, particularly using personal vehicles, confirm that your insurance program properly addresses that exposure. Liquor liability coverage is only one part of the overall risk.
1 part umbrella review
If your business carries umbrella or excess liability coverage, confirm whether it extends over your liquor liability policy. This is a simple but important coverage question to ask.
A dash of sales reporting
As cocktails-to-go and alcohol delivery become a larger part of your business, insurance carriers may want a clearer picture of where alcohol sales are coming from. Maintain records that distinguish between on-premises, takeout, and delivery sales. This information may be helpful during the renewal process.
Finish with strong procedures
Age verification, refusing a delivery when appropriate, employee training, and documenting internal procedures are important parts of managing risk and can be just as important as the insurance coverage itself.
The Takeaway
Cocktails-to-go provide another opportunity for New Jersey restaurants to serve customers and generate revenue.
The insurance side does not need to be complicated. The key is making sure your broker understands how your operation is changing, how alcohol is reaching the customer, and whether your current insurance program appropriately reflects those changes.
A brief conversation with your broker before launching or expanding cocktails-to-go or delivery service can help identify potential coverage gaps before they become a problem.
Have an Insurance Question?
NJRHA members can visit the Association’s resource page and use Acrisure’s insurance chat to ask questions about coverage, claims, workers’ compensation, liquor liability, and other insurance issues.
Joel MacLean, CIC, CLCS, CPIA
Senior Risk Advisor | Acrisure
Executive Suite Vendor | New Jersey Restaurant & Hospitality Association
