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Alcohol Delivery from Restaurants: Emerging Risks and Coverage Needs

Liquor liability considerations for restaurant alcohol delivery operations.

Alcohol delivery has expanded dramatically, with many restaurants now offering beer, wine, and cocktails for delivery alongside food. This emerging service channel creates new liquor liability exposures that require careful management. Understanding how to deliver alcohol legally and safely protects your license and limits your liability.

Legal Requirements for Alcohol Delivery

Alcohol delivery is regulated differently than on-premise service:

State and Local Permits

  • Most states require specific delivery permits or endorsements
  • Some states prohibit restaurant alcohol delivery entirely
  • Local jurisdictions may have additional requirements
  • COVID-era temporary permissions may have expired

Critical: Verify your state and local requirements. Operating without proper permits creates both legal exposure and potential insurance coverage issues.

Packaging Requirements

  • Sealed containers required in most jurisdictions
  • Cocktails typically must be in sealed packaging
  • Tamper-evident seals or closures
  • Food must accompany alcohol in many jurisdictions

Delivery-Specific Liability Risks

Age Verification

You're responsible for ensuring alcohol reaches only adults:

  • ID verification at delivery required
  • No 'contactless' delivery for alcohol orders
  • Training delivery staff on ID verification
  • Systems to flag and verify alcohol orders

Delivering to Intoxicated Persons

Dram shop liability may apply to delivery:

  • Driver must assess customer condition at delivery
  • Refusal to complete delivery if customer appears intoxicated
  • Training on signs of intoxication
  • Documentation of refusals

Third-Party Platforms

Using DoorDash, Uber Eats, or other platforms for alcohol:

  • Platform requirements vary by jurisdiction
  • You're still responsible for compliance with your license
  • Verify platform's alcohol delivery procedures
  • Your liability may extend to platform driver actions

Insurance Considerations

Liquor Liability

Verify your liquor liability policy covers delivery:

  • Some policies exclude off-premises delivery
  • Coverage may require specific permits
  • Notify your carrier of delivery operations
  • Review policy annually as delivery evolves

Auto Liability

If using your own drivers:

  • Commercial auto or HNOA coverage needed
  • Driver screening and MVR checks
  • Coverage for transporting alcohol

Best Practices for Alcohol Delivery

  1. 1.
    Verify permits: Confirm you have all required delivery permits
  2. 2.
    Train staff: ID verification, intoxication recognition, refusal procedures
  3. 3.
    Seal everything: Tamper-evident packaging for all alcohol
  4. 4.
    Require signatures: Document delivery to verified adult
  5. 5.
    Refuse when necessary: Train and empower drivers to refuse delivery
  6. 6.
    Track orders: Systems to monitor alcohol delivery patterns
  7. 7.
    Review insurance: Confirm coverage for delivery operations

Frequently Asked Questions

Can we deliver cocktails?

Depends on your state. Some states allow cocktail delivery in sealed containers. Others prohibit mixed drink delivery. Many require food to accompany cocktail delivery. Check your state ABC regulations and any local restrictions.

What if our delivery driver is in an accident with alcohol in the car?

This is primarily an auto liability issue. The presence of alcohol in the vehicle shouldn't change the auto claim itself. However, if the accident causes the alcohol to be delivered inappropriately (packages break, bystander accesses the alcohol), additional issues could arise. Ensure proper commercial auto coverage.

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