Liquor Liability Insurance

Liquor liability coverage is a specialty risk that protects clients' businesses from liability for accidents cause by intoxicated customers.

This type of coverage protects individuals and businesses from liability claims that arise from guests consuming too much alcohol served at their establishment. It provides protection against damages from injury claims, as well as covers legal costs associated with defense against such claims.

Unfortunately, inebriated patrons and guests come with an entire host of liabilities such as destruction of property, physical altercations with other patrons, auto accidents, and more. Liquor liability gives businesses protection against lawsuits and injury claims resulting from these issues.

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Why is liquor liability insurance needed?

Many states have laws stating that establishments that serve or supply alcohol in some capacity can be held liable for "over-serving" customers who then cause property or bodily harm. Liquor liability coverage gives those businesses protection from legal responsibilities related to damages caused by their patrons. 

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Who needs liquor liability insurance?

Any establishment who manufactures, serves, sells or supplies alcohol to guests in some capacity. This extends to parties hosted by offices and is covered by "Host Liquor Liability." These types of establishments can include:

  • Bars, Restaurants, Hotels that serve alcohol
  • Caterers and catering facilities
  • Special Events, fundraisers, parties that have alcoholic beverages served
  • Breweries/Wineries
  • Grocery and liquor stores

Liquor liability coverage, however, only extends to third party claims. It does not protect the serving establishment from damages caused to their premises, or from serving underage guests. 

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What does liquor liability insurance cover?

Liquor liability covers businesses from damages that occur at the fault of a patron who was served at their establishment. This can include:

  • Drunk driving
  • Litigation and court fees related to defense
  • Assault and Battery 
  • Property damage
  • Personal injuries to themselves

Some states require certain businesses to carry this coverage by law.