OAR 845-005-0400
Liquor Liability Insurance or Bond Requirement

Certain licensees are required to maintain liquor liability insurance or a bond. Failure to maintain the required liquor liability insurance or bond constitutes a serious threat to public health and safety. This rule explains the liquor liability insurance or bond requirement and sanctions.

(1)

Requirement. The Commission will refuse to license any applicant, may cancel or suspend the license of any licensee, and may sanction any licensee that is subject to the requirements of this rule and fails to:

(a)

Maintain liquor liability insurance of not less than $300,000; or

(b)

Maintain a liquor liability bond with a corporate surety authorized to transact business in this state in the amount of not less than $300,000.

(c)

Designate and maintain the Commission as a certificate holder.

(2)

Applicability. This rule applies to the following license types:

(a)

Full on-premises sales license;

(b)

Limited on-premises sales license;

(c)

Brewery-public house license;

(d)

Temporary sales license, special events winery license, special events grower sales privilege license, special events brewery-public house license, and special events distillery licenses if the licensed event is open to the public and attendance at the event is anticipated to exceed 300 individuals per day; and

(e)

Winery license, brewery license and grower sales privilege license unless the applicant or licensee submits an affidavit stating consumption of alcoholic beverages will not occur on the licensed premises.

(3)

Providing Proof of Insurance or Bond at Licensing. An applicant for a license listed in subsection (2) must provide to the Commission proof of insurance or bond prior to licensing.

(a)

Proof of Insurance. The applicant must provide to the Commission a certificate of insurance that shows applicant as the named insured, the premises address, liquor liability insurance coverage in the amount of at least $300,000, that coverage is current, and lists the Commission as a certificate holder.

(b)

Proof of Bond. The applicant must provide to the Commission the corporate surety with a valid bond identification number.

(4)

Providing Proof of Insurance or Bond at License Renewal. An applicant for the renewal of a license listed in subsection (2) must provide to the Commission proof of insurance or bond prior to the Commission renewing the license.

(a)

Proof of Insurance. The applicant must provide to the Commission the name of the insurance company and the insurance policy number. Notwithstanding this requirement, the Commission may require the applicant to provide proof of insurance as per subsection (3)(a) of this rule.

(b)

Proof of Bond. The applicant must provide to the Commission the corporate surety and a valid bond identification number.

(5)

Providing Proof of Insurance or Bond Other Than at Licensing or License Renewal.

(a)

The licensee must maintain valid and current proof of insurance or bond at the licensed premises and:

(A)

Post the proof of insurance or bond in full public view; or

(B)

Make the proof of insurance or bond available at any time for immediate inspection by any Commission employee.

(b)

Proof of insurance. The applicant must provide to the Commission a certificate of insurance that shows licensee as the named insured, the premises address, liquor liability insurance coverage in the amount of at least $300,000, that coverage is current, and lists the Commission as a certificate holder.

(c)

Proof of bond. The applicant must provide to the Commission the corporate surety and a valid bond identification number.

(d)

Failure to post or provide proof of insurance or bond as required in this section is a Category V violation, and if the licensee also has a lapse in insurance or bond coverage, the Commission may assess a separate sanction as per subsection (7) of this rule.

(6)

Immediate Suspension. If a licensee fails to provide to the Commission proof of insurance or bond the Commission may immediately suspend the license pursuant to ORS 471.168 (Certain licensees required to maintain liquor liability insurance or bond). The Commission may rescind the Order of Immediate Suspension once the Commission determines that the licensee has provided proof of valid and current insurance or bond as per subsection (5)(b)(c) and (7)(c) of this rule.

(7)

Failure to maintain insurance or bond as required is a violation. The sanction for the first lapse in coverage within a two year period is as follows:

(a)

If the lapse in coverage is no more than 30 days the sanction is $1,650 or a 10 day license suspension.

(b)

If the lapse of coverage is 31 days to no more than 60 days the sanction is $4,950 or a 30 day license suspension.

(c)

If the lapse of coverage is 61 days to no more than 90 days the sanction is $4,950 and a 90 day license suspension. In addition, the licensee must provide to the Commission proof of premium payment for at least a 12-month period for the statutory minimum insurance and/or bond limits set forth in ORS 471.168 (Certain licensees required to maintain liquor liability insurance or bond).

(8)

The sanction for any lapse in coverage not described in section (7) is cancellation of the license.

(9)

Aggravating or mitigating circumstances. In addition to the Commission’s other aggravating and mitigating circumstances, when the Commission discovers a lapse in coverage, the Commission may mitigate the sanction if the Commission determines that the cause for failure to maintain liquor liability insurance or bond as per subsection (1) of this rule was beyond the reasonable control of the licensee. One method for showing the cause for failure to maintain liquor liability insurance or bond was beyond the reasonable control of the licensee is for the Commission to determine that the licensee has provided sufficient proof to the Commission that the licensee has continued to pay for coverage during the period of the lapse.

(10)

Cessation of Coverage. A licensee may elect not to maintain liquor liability insurance or bond coverage, but only if the licensee will cease the sale and service of alcohol and prohibit the consumption of alcoholic beverages on the licensed premises for at least 90 contiguous days and the licensee provides the Commission with prior written notice of the start and end date of the cessation of the sale and service of alcohol. Failure to notify the Commission is a Category IV violation and is in addition to separate violations that may be charged for operating without coverage.

Source: Rule 845-005-0400 — Liquor Liability Insurance or Bond Requirement, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=845-005-0400.

845–005–0301
Purpose and Interpretation 845–005–0302
Regular License 845–005–0303
Alcohol Impact Areas 845–005–0304
Local Government Recommendations: Requirements for Local Governments and License Applicants 845–005–0306
Procedures for Public Notice of License Applications 845–005–0308
Valid Bases for Adverse Local Government Recommendations 845–005–0311
True Name on Application 845–005–0312
Forms Required for License Applications 845–005–0314
Refusal to Accept an Application 845–005–0315
Applications: Refusal to Process 845–005–0320
License Refusal Reasons that Can Not Be Overcome 845–005–0321
Additional License Refusal Reasons for a Full On-Premises Sales License for a Nonprofit Private Club 845–005–0322
Additional License Refusal Reasons for a Full On-Premises Sales License for a For-Profit Private Club 845–005–0325
License Refusal Reasons: Applicant Qualifications 845–005–0326
License Not Demanded by Public Interest or Convenience 845–005–0329
Licensing Outdoor Areas Not Abutting a Licensed Building 845–005–0331
Licensing Outdoor Areas Abutting a Licensed Building 845–005–0332
Tour Boat License 845–005–0336
Certificate of Authority Holder’s Sales Employees 845–005–0355
Restricting License Privileges and Conduct of Operations 845–005–0360
License Renewal: Requirements for Applicants 845–005–0365
Change of Licensee 845–005–0366
License Surrender 845–005–0400
Liquor Liability Insurance or Bond Requirement 845–005–0405
Full or Limited On-Premises Licensee Small-Scale Private Catering 845–005–0410
Full or Limited On-Premises Licensee Large-Scale Private Catered Events and Temporary Use of an Annual License for Events at Another Location 845–005–0412
Special Events Brewery License 845–005–0413
Special Events Distillery License 845–005–0414
Special Events Brewery-Public House License 845–005–0415
Special Event Winery and Special Event Grower Sales Licenses 845–005–0416
Delivery of Malt Beverage, Wine or Cider to Individuals — Definitions 845–005–0417
Qualifications for Direct Delivery of Malt Beverages, Wine, or Cider to a Resident of Oregon 845–005–0424
Guidelines for Approval of a For-Hire Carrier’s Plan for Delivery of Malt Beverages, Wine, Cider or Distilled Spirits 845–005–0425
Qualifications for Wine Self-Distribution Permit for Wine and Cider 845–005–0426
Qualifications for Retailer Endorsement to Receive Wine or Cider from the Holder of a Wine Self-Distribution Permit 845–005–0427
Retail On-Premises Malt Beverage or Wine Sampling Involving Manufacturer or Certificate of Approval Holder 845–005–0428
Retail On-Premises Distilled Spirits Sampling Involving Distillery Representative 845–005–0431
Qualifications for Distilled Liquor Tastings Provided by Oregon Distillery Licensee 845–005–0440
Temporary Sales Licenses 845–005–0445
Temporary Authority 845–005–0450
Standards for Authority to Operate a Licensed Business as a Trustee, a Receiver, a Personal Representative or a Secured Party
Last Updated

Jun. 8, 2021

Rule 845-005-0400’s source at or​.us