- Last Updated:
- 6/6/2025
- Tricia Johnson
All successful freelance bartenders have at least two things in common. Along with a solid bartending business plan, they have bartender insurance. Why? Liquor-related lawsuits can rack up thousands in damages that impact your reputation and bottom line.
Being a licensed and insured bartender is essential to staying profitable over the long haul.
Not sure how to get bartender insurance? Here are the must-knows to become an insured bartender.
What Is Bartender Insurance?
Bartender insurance — also called liquor liability insurance — is designed to protect bartending businesses from paying out-of-pocket for claims related to serving, selling, or providing alcohol. It covers you if you’re held responsible for accidents and damages caused by an intoxicated customer.
Most states have dram shop laws that hold bartenders financially responsible for alcohol-related accidents. In other words, if you accidentally overserve a wedding guest or forget to ID an underage customer, you could be left holding the bill if they injure themselves, hurt somebody else, or cause property damage.
Bartender insurance can cover these expenses.
Why Bartenders Need Insurance
It’s no secret that drinking alcohol can be dangerous, but it can also have major consequences for everybody involved. If a bartender overserves a patron or forgets to ID an underage customer who goes on to drive drunk and cause an accident, the bartender can be held responsible for the cost of those claims.
You may be sued by the injured party and/or face criminal charges. Bartender liability claims like this one can cost you if you don’t have insurance:
In this 2023 liquor liability lawsuit, a Texas bartender accidentally overserved a patron who drove away and struck another car, killing one passenger and injuring three others. The bartender is being sued for $1 million in damages.
While not every case has million-dollar claims, legal costs in the thousands or more are common with alcohol-related incidents like car crash injuries and property damage. Bartender insurance is designed to keep you from paying out of pocket if you face a claim.
How to Get Bartender Insurance in 4 Steps
Learning how to get bartender insurance only sounds complicated. You can become an insured bartender in 4 easy steps with Insurance Canopy.
Step 1: Choose the Right Insurance Policy
Insurance Canopy offers two types of bartender insurance policies: annual and event. Depending on how often you work and your budget, either one might fit your needs best.
| Annual Bartender Insurance | Event Bartender Insurance | |
|---|---|---|
|
Starts at |
$35.42/month |
$275/event |
|
Coverage for |
12 months |
Up to 3 days (great for set up, service, and tear down) |
|
Best for |
Serving liquor year-round or working events often |
Occasional events (1–2 per year) |
Step 2: Identify Your Coverage Needs
You need to have general liability coverage before buying liquor liability insurance. General liability insurance safeguards your business from claims relating to property damage and bodily injury to others.
Slips and falls: You’re bartending at a wedding when someone trips over your cooler and breaks a tooth. If they decide to sue you to pay for medical bills or time off work, general liability insurance could help you cover the cost.
Property damage: A keg leaks onto an event hall’s hardwood floors. The alcohol ate through the finish, so the venue comes to you with a $2,000 refinishing bill. General liability can pay for damage to venues or patrons’ property that would otherwise come out of your profits.
Illness and injury: Cold storage for your dairy-based mixers is spotty at best at an outdoor event, and several patrons you served get food poisoning. General liability could cover the expense if they or the event organizer decide to sue you.
General liability insurance does not cover alcohol-related claims, so bartenders also need liquor liability insurance. Insurance Canopy’s bartender insurance policy bundles general liability and liquor liability insurance to make it easier to protect your business.
Consider including extra protections that tailor your insurance to your unique risks. If you store client data like credit card numbers, see the occasional fight at your events, or invest in quality bartending or business tools, consider these coverages:
Data theft: You click on an event invoice link in an email without thinking. Surprise — it’s a phishing scam. The hacker gets your stored client payment details, and you get a data breach lawsuit. Cyber liability insurance offers financial protection if you’re the victim of data theft.
Assault and battery: You’re working concessions for a big sporting event when two patrons get rowdy and start a fistfight. Assault and battery coverage could shield you from paying if they injure each other or a bystander and you’re found liable because you served them.
Step 3: Select Your Coverage Limits
Before you move on to the application, consider how high your liquor liability coverage limits need to be. Your application will ask you to choose between three limits:
- $100,000 Occurrence / $300,000 Aggregate
- $250,000 Occurrence / $300,000 Aggregate
- $1,000,000 Occurrence / $2,000,000 Aggregate
An insurance limit is the most Insurance Canopy will pay out for something your policy covers. In other words, if you file a claim that exceeds your policy limit, costs left over after the limit is paid down to zero are your responsibility.
- The occurrence limit is the most Insurance Canopy will cover for an individual claim
- The aggregate limit is the most Insurance Canopy will cover for all eligible claims you submit during the year your policy is active
How Bartender Insurance Limits Work
You submit a qualifying claim for damage in a multi-vehicle pileup caused by a drunk patron. The damage costs $105,000 to repair, and your policy has a $100,000 per occurrence and $1 million aggregate limit.
Your policy will cover this occurrence up to the $100,000 limit, but you’ll need to pay the $5,000 left over on this claim.
You still have $900,000 left in your aggregate limit to pay for other accidents this year.
To choose the correct limit for your business, consider your risk factors. The cost of your insurance will go up if you select higher limits, but you’ll also receive more coverage in case of a claim. Risk factors for higher claims or more likely claims include:
- Business size: The more people you serve, the greater your odds of an accident. Our lowest limit is most popular with solo private bartenders, while mobile bartending businesses with multiple employees often choose higher limits.
- Event and venue type: Consider the environment and crowd size at your typical events. Outdoor weddings, corporate events, sporting events, and festivals can be riskier.
- Event frequency: Businesses that constantly work gigs have more opportunities for things to go wrong.
- State laws: Businesses in states with harsh dram shop laws may want more coverage.
Step 4: Complete Your Application
- Your business’s gross sales
- The state your business operates in
- Your liquor liability policy limits
- Your name, email, and business address
- Your business type (sole proprietor/individual, corporation, partnership/joint venture, or LLC)
- Your business name and phone number
- Payment information
- The start and end dates you need for your policy (event policy only)
- The number of participants at the event (event policy only)
- Your bartender certificate (optional)
- The name and contact information of any additional insureds you need to add (optional)
Invest in Your Future as an Insured Bartender
Learning how to get bartender insurance probably wasn’t the most glamorous part of your day. (Sadly, insurance knowledge isn’t as impressive as the perfect pour.) But getting insured pays off in peace of mind and lasting success. That’s an investment worth making.
Becoming a Licensed and Insured Bartender: FAQs
What Happens If I Don’t Get Bartender Insurance?
Skipping insurance is tempting, but it means you’re on your own to pay for property damage, injury claims, liquor liability lawsuits, drunken fights, stolen gear, data breaches, and more. We hope you never have to face a claim, but in an industry as risky as bartending, insurance is the smart choice for long-term stability.
How Do I Know If I’m Required to Have Insurance in My State?
Dram shop laws and liquor liability insurance requirements vary by state, so check resources like the Liquor Control State Directory or search “[your state] alcohol control” to find your local government’s regulation website.
Can I Purchase Bartender Insurance If I Work Part-Time or As a Contractor?
Bartender liability insurance is for self-employed or employed private bartenders and mobile bartending business owners who work full-time, part-time, or as independent contractors.
What Is the Difference Between General Liability Insurance and Liquor Liability Insurance?
Mobile bartenders who serve or provide alcohol need both general and liquor liability insurance, which cover different risks:
- General liability: Protects you from the cost of third-party bodily injury claims and third-party property damage that don’t involve alcohol. For example, a guest trips over an extension cord trailing from your portable bar setup and sprains their ankle.
- Liquor liability: Guards you against the cost of third-party liability claims involving alcohol. For example, a guest who gets behind the wheel drunk and causes a car accident.
How Do I Adjust My Coverage If My Business Grows or I Start Offering New Services (i.e., Catering)?
As you add new services to your business, consider raising your insurance limits or add new types of coverage to cover your increased risk.
