Florida Insurance Claims Adjuster License Practice Exam

Which liability is excluded if the insured is in the business of serving alcohol?

1. General liability

2. Liquor Liability

3. Employment practices liability

4. Advertising injury liability

The correct answer is: Liquor Liability

Serving alcohol comes with a unique set of risks and potential liabilities. In this scenario, choosing option B, Liquor Liability, as the excluded liability makes the most sense. General liability covers accidents and injuries that might occur on the business's premises, employment practices liability covers claims related to employee discrimination and harassment, and advertising injury liability covers any claims related to intellectual property infringement or false advertising. However, none of these options specifically address the risks associated with serving alcohol. Therefore, it is important for businesses in the alcohol-serving industry to have a separate liquor liability insurance policy to cover this specific type of liability.