Liquor Liability Licenses…What are they and why do we need them?

The state of West Virginia requires many different forms of licensing and insurance for bars and clubs to be able to run smoothly and serve alcoholic beverages. The many licenses include smaller ones such as a bartender license or an alcohol seller/server permit. Others are bigger like the Liquor Liability License and Insurance. Without that big guy, bars and clubs have no hope of ever being able to sell alcohol and make any sort of profit.

Let me start by shining a quick spotlight on why Liquor Liability Licensing is so important.

 

Trusted Choice made it very clear what Liquor Liability Licenses are and why they are required. On their website it says,

“Any business that sells or serves alcoholic beverages, including restaurants, nightclubs, and bars, can be held liable for damages or injuries caused by intoxicated patrons. This can include damages that result from fights, careless behavior or even automobile accidents. While it may seem logical to place the blame fully on the individual who perpetrated these acts, the establishments that allowed them to become intoxicated are also held largely liable and can be sued for exorbitant sums of money, particularly if resultant injuries are severe or fatal.

Fortunately, you can protect your business from large financial losses with a liquor liability insurance policy. These policies are sometimes included with general liability coverage in some business insurance policies, but most often they need to be purchased separately as stand-alone coverage or as a business policy endorsement.”

They also touch on the fact that not all states mandate this coverage. Even in some of those states, you may be required to carry it if your financial institution or landlord require it.

[ For an example of a Liquor Liability application from Bray and Oakly, click here. ]

That makes it pretty clear. So why is this such an issue that it needs to be brought up in the sense of Morgantown? Well, West Virginia’s laws regarding these Liquor Liability Licenses has changed in the past year.

There was a million dollar Liquor Liability and Insurance policy that was mandatory for all bars and clubs to purchase if they were to be serving alcohol. Because most of these licenses needed to be renewed every year in June, the majority of the bars’ insurance policies expired. Now that this particular license is not mandatory anymore, the owners had the option to repurchase or not.

[ For more information on these specifics, see the State of West Virginia’s Department of Revenue’s Alcohol Beverage Control Administration document. ]

The West Virginia Alcohol Beverage Control Administration realized there was a lot of confusion on these licenses and insurance policies that they made a whole page filled with questions and answers. Some questions I found informative are below.

Q. How long does it take to get a license?
A. The time varies, depending on several factors: the length of time taken to process and get CIB reports back; whether or not paper work is in order; inspector’s schedule, Commissioner’s review of file.

Q. How do I get a liquor/wine/beer license?
A. Call Licensing Division and ask for an application packet, which contains the necessary forms and instructions (phone 1-800-642-8208 or (304) 558-2481) or download forms from our website.

Q. How long does it take to get a license?
A. The time varies, depending on several factors: the length of time taken to process and get CIB reports back; whether or not paper work is in order; inspector’s schedule, Commissioner’s review of file.

Q. What is the distance restriction concerning a church or school?
A. Three hundred (300) feet measured front door to front door, as people travel.

Q. Can an individual get a liquor license?
A. An individual may obtain a retail nonintoxicating beer or wine license so long as he/she has been a resident of West Virginia for two (2) years prior to making application. Any establishment selling liquor to consume on the premises is considered a private club; and private club licenses may be issued only to corporations, associations, or limited liability companies.

Q. A license is good for how long?
A. All licenses expire June 30 of each year and must be renewed at that time. The fiscal year is July 1 to June 30.

Q. What are some of the most common reasons that license renewals are returned?
A. 1. All of the required signatures are not on the form. For a corporation, the president or vice-president of the corporation must sign the application itself and the bonds. If an association, each person listed as a member of the association must sign all of the paperwork.
2. The beer or alcohol bonds are incomplete or incorrect. Each section on the bond applying to the licensee must be completed in the proper section. There are specific sections for each type of entity- a corporation, an association, an individual or partnership. The proper section must be completed. Also, be sure the appropriate individuals have signed if it is a new bond form. (See item #1)
3. Improper form of payment. The only forms of payment accepted for license fees are cashier or certified checks or money orders.
4. Failure to answer all questions. Please answer every question on the renewal application., Even if all of the officers are the same as last year, We need them listed anyway. Renewal applications are relied upon for keeping our files updated and accurate.

Some people may be confused on why this is even something students and locals should be worried about. Most bar/club goers tend to go to these establishments with the intent to consume alcohol. Unlike restaurants and bars/clubs in other areas, the ones in Morgantown do not really cut people off. That means, people can be drinking to oblivion, but will not be kicked out until they create an issue (i.e., throw up, start a fight, fall asleep on the bar, etc.).

With that image in mind, imagine going to one of the popular bars/clubs in Morgantown. You are having a lot to drink and all of a sudden you slip on a wet floor and crack your head open. You getting hurt on the property of the bar/club after consuming alcohol at their establishment, means you fall under their insurance. Without these particular licenses, you are not protected and neither are the bar/club owners. In some situations it can really be a lose/lose. Although these tweets are slightly outdated, you can see situations where serious incidents have resulted in a loss of liquor licensing.

For those of you in Greek organizations, this is the reason that it can be so hard recently to plan a social or date party. Many sororities need the million dollar Liquor Liability Licensing applied to Morgantown bars/clubs in order to hold events there. Why? Because  Greek organizations have insurance as well. They need to be able to ensure that if something happens, the national organization as a whole is covered and also that all of their members are covered.

So overall, why is this important? Bar and club goers need to know that they can be putting themselves at risk when they go out and consume alcohol. Being cautious is always important. Know what bars have what insurance and know your insurance before walking into one of the establishments around campus. You won’t regret it!

[ For more information on West Virginia’s Code: Chapter 60. State Control of Alcohol Liquors, click here. ]