Senator Chris Elliott (Republican Josephine) announced today that the Alabama Senate passed the Liquor Liability Insurance Reform Act 29-0. Senate Bill 104, sponsored by Sen. Elliott and others, seeks to bring about common-sense insurance reforms and increased personal liability.
The Alabama Drum Shop Act was enacted in 1909 to protect establishments that serve alcoholic beverages. According to legal terms, a ‘dram’ refers to a bar, restaurant, etc. where alcoholic beverages are served. To date, he has only three insurance companies that offer policies to retailers and require $100,000 in coverage, currently costing businesses over $35,000 a year.
This law, in its current form, creates a broader standard that a server must serve a person who is knowingly intoxicated and that service is the proximate cause of injury or death. According to the Bureau of Services (ISO), each state is assigned a liquor liability hazard risk grade. Alabama is rated 10 due to his McIsaac v. Monte Carlo Club, Inc. case in 1991. Adoption of this law overrules that case.
“We made it a priority to involve all stakeholders in finding common-sense solutions that help businesses, insurance companies, and most of all, the citizens of Alabama. I was shaken by the impact and cost of this, and I appreciate the support my colleagues have given me in resolving this issue,” said Sen. Elliott.
The passage of this law should reduce the cost of liquor liability insurance for restaurant and bar owners and give businesses the opportunity to purchase more insurance at a lower cost. Endorsed by: Alabama Beverage Licensees Association, Alabama Brewers Guild, Alabama Grocery Stores Association, Alabama Independent Insurance Agency, Alabama Restaurant and Hospitality Association, Alabama Retail Association, Alabama Tourism Partnership, National Federation of Independent Business, and Petroleum Company and convenience marketer in Alabama.
