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H7043AAlcohol

Alcoholic Beverages - Retail Licenses

This bill requires applicants for retail liquor licenses in Westerly to maintain at least $300,000 in specific liability insurance.

Signed into law68 Yea0 Nay7 Not voting
Population
Affected
15
Email Legislator
Introduced Jan 9, 2026Committee House Municipal Government & Housing

Plain-English Summary

This bill amends Rhode Island law regarding retail liquor licenses to add specific requirements for the town of Westerly. Under this legislation, any applicant seeking a retail liquor license in Westerly must provide a certificate of insurance. This insurance must cover commercial general liability, liquor liability, and property damage with a minimum coverage amount of $300,000. Furthermore, the insurance policy must name the town of Westerly as an additional insured party and require that the town receives advance notice if the policy is modified or cancelled.

For younger readers

This bill makes a new rule for businesses in the town of Westerly that want to sell alcohol. Before a business can get a license to sell alcohol, the owner must show that they have insurance. This insurance is like a safety net that pays for damages if something goes wrong or gets broken. The rule says the insurance must cover at least $300,000 in costs. It also says the town of Westerly must be listed on the insurance paper so the town is protected too.

Who & Where It Applies

Impacted groups
Liquor license applicants in WesterlyBar and restaurant owners in WesterlyInsurance carriersTown of Westerly governmentResidents of Westerly
Impacted communities
Westerly

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Protects the community and public funds by ensuring that businesses profiting from alcohol sales have adequate insurance to cover potential damages or liabilities, rather than shifting that burden to taxpayers.
  • Increases corporate accountability by mandating that business owners in Westerly take financial responsibility for the specific risks associated with their industry, such as liquor liability.
  • Ensures that victims of accidents or property damage related to these establishments have a guaranteed source of compensation through the mandated insurance coverage.
  • Creates a financial barrier to entry for small, local business owners who may struggle to afford the premiums for commercial and liquor liability insurance, potentially favoring larger corporate chains.
  • Could disproportionately affect minority or low-income entrepreneurs trying to start a business in Westerly by increasing the upfront capital required to operate.
  • Mandates the purchase of private financial products, effectively funneling money to the insurance industry without providing a public option or support for struggling small businesses.
For Conservatives
  • Protects the municipal treasury and local taxpayers from potential lawsuits or legal costs by requiring private businesses to name the town as an additional insured party.
  • Enforces the principle of personal and business responsibility by ensuring that those who choose to engage in commerce carry the weight of their own risk management.
  • Supports local control by allowing the town of Westerly to implement specific standards that address the unique needs and risks of their community.
  • Imposes additional government regulations and red tape on private businesses, hindering the free market and adding administrative burdens to entrepreneurs.
  • Increases the cost of doing business in Westerly, which functions as a barrier to economic growth and limits the freedom of business owners to decide their own risk levels.
  • Interferes with private contracts by dictating specific terms, amounts, and beneficiaries of insurance policies, rather than allowing the market to determine necessary coverage.

Votes

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Full Bill Text

2 versions
Changes to existing Rhode Island law · 8 additions

SECTION 1. Section 3-7-27 of the General Laws in Chapter 3-7 entitled "Retail Licenses" is hereby amended to read as follows: 3-7-27. Insurance requirements.

(a) In the town of Burrillville, an applicant for a license under this chapter shall file with the application a certificate of insurance evidencing commercial, general-liability and property- damage coverage in the minimum amount of three hundred thousand dollars ($300,000); or for a minimum amount to be set by ordinance. The certificate shall provide that the insurance shall not be modified or cancelled unless prior, advance notice is given to the town of Burrillville and that the town of Burrillville is named as an additional insured. A licensee must be insured by a carrier licensed in this state.

(b) In the town of North Providence, an applicant for a license under this chapter shall file with the application a certificate of insurance evidencing commercial, general-liability, and property-damage coverage in the minimum amount of three hundred thousand dollars ($300,000); or for a minimum amount to be set by ordinance. The certificate shall provide that the insurance shall not be modified or cancelled unless prior, advance notice is given to the town of North Providence, according to the terms of the insurance policy, and that the town of North Providence is named as an additional insured. A licensee must be insured by a carrier licensed in this state.

(c) In the town of Westerly, an applicant for a license under this chapter shall file with the application a certificate of insurance evidencing commercial, general-liability and liquor liability and property-damage coverage in the minimum amount of three hundred thousand dollars ($300,000). The certificate shall provide that the insurance shall not be modified or cancelled unless prior, advance notice is provided to the town of Westerly, according to the terms of the insurance policy, and that the town of Westerly is named as an additional insured. A licensee shall be insured by a carrier licensed in this state.

SECTION 2. This act shall take effect upon passage.