Insurance coverage requirements

Sec. 6.4. (a) This section applies to the holder of one (1) or more of the following: (1) A retailer's permit. (2) A craft manufacturer's permit, if alcoholic beverages are served for consumption on the licensed premises. (b) A permit holder must maintain during the permit term: (1) a liquor liability insurance policy; or (2) an endorsement to a general liability insurance policy; that has liquor liability coverage. (c) The insurance coverage requirements under subsection (b) do not apply: (1) while a permit is on deposit under IC 7.1-3-1.1; or (2) if the establishment that operates under the permit has annual gross sales from the sale of alcoholic beverages for on premises consumption of less than twenty-five thousand dollars ($25,000). (d) If an establishment operates under: (1) a retailer's permit; and (2) a craft manufacturer's permit; the insurance coverage requirements under subsection (b) apply to the establishment as a whole. The permit holder is not required to maintain the total insurance coverage requirements for each permit that is issued to the establishment. (e) A permit holder must provide the commission with proof of insurance coverage: (1) to apply for or renew a permit; (2) before the commission may make a permit active that is on deposit under IC 7.1-3-1.1; or (3) at any time, upon the request of the commission. (f) The commission may deny, suspend, revoke, or not renew a permit, if the permit holder fails to maintain the insurance coverage required under this section. (g) After June 30, 2024, the commission may not: (1) issue, renew, or transfer a permit; or (2) make a permit active that is on deposit under IC 7.1-3-1.1; unless the permit applicant or permit holder complies with this section. This subsection expires July 1, 2027. (h) A permit holder that holds an active permit issued before July 1, 2024, must comply with this section not later than January 1, 2025, or the commission may suspend or revoke the permit. This subsection expires July 1, 2027.