Liquor Liability Insurance

What is liquor liability insurance?

"Dram shop" laws hold businesses liable for harm that visibly intoxicated individuals cause to other people, themselves, or property. Liquor liability insurance helps protect against this liability by providing coverage for businesses that serve, sell, distribute, manufacture or supply alcoholic beverages to the public. 

Liquor liability insurance provides coverage for bodily injury or property damage for which you may become legally liable as the result of contributing to a person's intoxication.  A basic general liability policy excludes liquor liability coverage for businesses that generate a profit from alcohol. Liquor liability insurance is designed to fill this gap in coverage.

Why do you need liquor liability insurance?

Liquor liability laws vary from state to state, but most lending institutions will require businesses to carry a liquor liability policy. If you sell or offer alcohol on your business premises, you should consider a liquor liability insurance policy, even if you're not required to carry it.

Keep in mind that your general liability policy will not cover you for any alcohol-related incidents. 

A liquor liability policy will cover you in any of the following situations:

  • Serving alcohol at your hotel, B&B, café, restaurant or bar
  • Serving alcohol at your business event or party
  • Offering catering services that include alcoholic beverages
  • Owning a facility that can be rented out for parties, events or weddings
  • Running fundraisers or special events that include alcoholic beverages on-site 

If you own a business that sells, distributes or manufactures alcohol, you should consider liquor legal liability coverage. This will cover you and your business for bodily injury or property damage for which you may become legally liable. Breweries, distilleries, wineries, alcohol distributors, bars, taverns, restaurants, grocery stores, convenience stores,and liquor stores require special coverage for liquor liability.

If you're hosting a special event and planning to serve alcohol to your guests, you will need a host liquor liability insurance policy. This coverage will protect you from any liability you assume by serving alcohol to your employees, prospects, and customers. 

We're here to help

Our first priority is helping you take care of yourself and your business. If you ever have any questions about your existing coverage or would like to discuss your options, please do not hesitate to contact us.