Hawaii Governor Ponders Liquor Insurance

Hawaii Gov. Linda Lingle is considering whether to sign into law a requirement for alcohol sellers to have at least $1 million in liquor liability insurance.

The measure passed the Legislature this year after residents said they were worried about liability for alcohol-related accidents involving uninsured bars.

But for some businesses, the cost of having to buy more insurance would be an another burden in a poor economy.

Insurance broker Young Kam says many of his clients, who are bar operators, already are required by their landlords to buy liquor liability insurance. But some retailers may not have done so.

Hawaii’s liquor liability laws allow someone injured by a person who had been drinking to sue all the places where the person had been drinking before the accident.