During colonial times, a unit of liquid was referred to as a "dram" and an establishment, such as a tavern or bar, that served alcohol was called a "dram shop." Laws regarding alcohol service to patrons have fluctuated wildly, from outright prohibition to today's "dram shop" laws.
Businesses that serve or furnish alcohol are required by many states with dram shop laws to carry liquor liability insurance. These include breweries, bars, caterers, concession stands, food vendors, restaurants, taverns, and other establishments. But did you know that some states even require social hosts to carry liquor liability insurance?
What Is Social Host Liquor Liability Insurance?
If you are hosting an event and serving alcohol at that event, as the host, you could be held liable for the service of alcohol to someone who is intoxicated.
This means that if one of your guests becomes inebriated and injures someone or damages property, the injured party could sue you for financial compensation. Even if the lawsuit has no merit, it could still cost a pretty penny just to defend yourself.
You need social host liquor liability insurance if you are hosting any event and serving alcohol, including, but not limited to:
- Corporate Events
- Religious Ceremonies
Social Host Liability Laws
Many people who serve alcohol at parties or weddings really have no idea what the state laws are in regards to their liability. This document produced by Mothers Against Drunk Driving contains a chart that outlines the social host dram shop laws in each state.Dram Shop and Social Host Liability
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*All insurance policies have conditions, limitations and exclusions. Please refer to the policy for exact coverages.