Bill Sponsors
Gu, Felag, and Urso
Committee
Senate Judiciary
Summary
Select
This bill amends Rhode Island law to establish specific insurance requirements for businesses applying for retail alcohol licenses in the town of Westerly. Applicants must provide a certificate of insurance demonstrating coverage for commercial general liability, liquor liability, and property damage. The minimum coverage amount is set at $300,000, though the town may establish a different amount by ordinance. Furthermore, the insurance policy must name the town of Westerly as an additional insured party, and the town must be notified if the policy is modified or cancelled.
Sponsor
Analysis
Pros for Progressives
- Protects public funds by ensuring private businesses carry adequate insurance, preventing the town and its taxpayers from bearing the financial burden of liability lawsuits involving alcohol retailers.
- Standardizes safety and financial responsibility requirements for businesses selling alcohol, ensuring that if harm occurs, there are resources available for restitution.
- Ensures that insurance carriers are licensed in the state, supporting local regulatory oversight and maintaining consumer protection standards within the industry.
Cons for Progressives
- Increases startup and operational costs for small businesses in Westerly, which could create barriers to entry for low-income entrepreneurs or minority-owned businesses.
- Mandating that the town be named as an "additional insured" could increase insurance premiums, disproportionately affecting smaller, independent venues compared to large corporate chains with more capital.
- Focuses on financial liability management rather than addressing the root causes of alcohol-related harms through community health or harm reduction initiatives.
Pros for Conservatives
- Protects local taxpayers by ensuring that private businesses, rather than the local government, bear the financial risks and liabilities associated with their specific commercial operations.
- Upholds the rule of law by establishing clear, codified financial responsibility standards for operating a business involving potential public liabilities.
- Supports local control by allowing the specific minimum insurance amount to be set by local ordinance, rather than relying solely on a rigid state mandate.
Cons for Conservatives
- Imposes additional government mandates and bureaucratic red tape on private business owners, interfering with the free market and business operations.
- Forces private businesses to name the government as a beneficiary on private contracts, which may be viewed as government overreach into private commerce.
- Increases the cost of doing business in Westerly, potentially stifling economic growth and infringing on the freedom of business owners to manage their own risk.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Alcohol license applicants in Westerly
- Restaurant owners in Westerly
- Bar owners in Westerly
- Insurance carriers
- Town of Westerly administration
Towns Affected
Westerly
Cost to Taxpayers
None
Revenue Generated
None
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/16/2026 Introduced, referred to Senate Judiciary
Bill Text
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); 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 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.
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); 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 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.