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Liquor Liability Insurance

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Liquor Liability Insurance can help protect businesses that manufacture, sell or serve alcohol. Small business owners are typically better protected from claims that occur when a customer drinks too much and injures themselves or someone else. Without it, owners of restaurants, clubs, taverns and bars that serve alcohol could end up footing the bill for damages made by an intoxicated customer.

Property Damage

If a drunk patron trips and spills red wine on another guest, ruining their designer clothing


A customer gets into a fight outside your bar or restaurant after drinking too much

Legal Fees

A customer gets in an accident on the way home that causes seriously injuries to the other driver

Liquor Liability Insurance FAQ

You can get Liquor Liability Insurance as a standalone policy or in some instances, add it as an endorsement to general liability insurance coverage. Depending on where your business is located, you may be required to get liquor liability insurance in order to be approved for a liquor license in your state.

Liquor Liability Insurance helps protect businesses that manufacture, sell and serve alcohol. It will help cover losses resulting from intoxicated guests, such as:

  • Legal fees
  • Lawsuit settlements
  • Repairs to fix property damage
  • Medical expenses related to injuries
Liquor Liability Insurance can help cover claims from:
  • Assault and battery – If a customer you served alcohol to physically hurts another person.
  • Drunk driving – If an intoxicated person your business served or sold alcohol to damages property or causes an accident that leaves another driver with a bodily injury.
  • Property damage – A customer under the influence of alcohol causes to another person’s belongings.

Generally, liquor liability insurance cost is impacted by the percentage of your sales from selling alcohol. For example, a bar will typically pay a higher premium than a restaurant or grocery store. Other factors:

  • Industry
  • Location
  • Coverage limits

Establishments in 18th Century England sold alcohol by the spoonful (called a “dram”).

43 states have “dram shop laws” that allow businesses to be held liable if they sell or serve alcohol to intoxicated individuals who cause an injury or damage property. These laws are enforced through civil lawsuits, allowing DUI victims or their families to sue alcohol vendors or retailers for monetary damages.

Typically, no. Most general liability policies specifically exclude coverage for alcohol-related incidents.