Liquor Liability Insurance

Liquor liability insurance protects businesses that serve, sell, or manufacture alcohol from claims related to intoxicated patrons.

Serving alcohol creates unique legal exposure.

Liquor liability insurance protects businesses that sell, serve, or distribute alcoholic beverages from claims arising from the actions of intoxicated customers. If a patron causes injury or property damage after being served at your establishment, you can be held legally responsible.

What Liquor Liability Insurance Covers

Third-Party Injury

Liquor liability covers your legal defense, medical expenses for the injured party, and any settlement or judgment against your business.

Property Damage

Your policy covers property damage claims linked to alcohol served at your business.

Assault & Battery

Many liquor liability policies include or can add coverage for assault and battery incidents connected to alcohol service.

Who Needs This Coverage?

Any business that sells, serves, or distributes alcoholic beverages — whether it's your primary business or a secondary offering.

What Happens Without It

A patron is over-served at your restaurant, drives home, and causes a fatal accident. The victim's family sues your business under your state's dram shop law. Dram shop lawsuits can result in significant judgments, sometimes exceeding $1 million. General liability policies typically exclude liquor-related claims for businesses that sell or serve alcohol. Without liquor liability, your business and personal assets are fully exposed.

Real-World Example

A brewery's tasting room serves a customer who then causes a car accident injuring two people. The injured parties sue the brewery for $400,000. The brewery's liquor liability policy covers the legal defense and settlement, keeping the business operational while the claim is resolved.

RISKX — Commercial Insurance Agency | Licensed in All 50 States | (800) 400-8398 | [email protected]