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Liquor Liability vs. Host Liquor

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women cheers-ing with champagne
Last Updated: 1/9/2024

If your business serves alcohol and you’re looking to protect it with insurance, you’ve probably seen the terms “liquor liability” and “host liquor” floating around. At first glance, it’s hard to tell these two types of policies apart, and you may be wondering which is the right one for you. 

That’s why we’ve answered some commonly asked questions to help you choose which type of insurance is best for your business. Read on to learn more about host liquor vs. liquor liability and how you can get the right coverage today!

Liquor Liability Insurance

Who Does Liquor Liability Cover?

Liquor liability insurance is an annual or short-term policy available for hired professionals who serve alcohol as a business such as bartenders, caterers, chefs, and food vendors.

If you are selling and serving alcohol as part of your business, you are a good candidate for liquor liability insurance.

When Should I Buy My Liquor Liability Policy?

You should purchase your liquor liability policy prior to your event. Many events will require you to provide proof of insurance before booking you, so it’s best to purchase your coverage around the time you are applying to the event.

Insurance Canopy makes getting your quote quick and easy. With our online application process, you can get a copy of your quote emailed to you in just 10 minutes or less and be on your way to protecting your business with liquor liability insurance.

We recommend looking into your state’s requirements and finding out if dram shop laws apply to you prior to serving alcohol to any patrons. Even if your state does not have dram shop laws, you could still be sued if your service of alcohol resulted in a patron causing bodily injury or property damage.

What Are the Coverage Limits and Deductible for Liquor Liability?

You can choose between the following three limit options in the application:

  • $100,000 Occurrence / $300,000 Aggregate
  • $250,000 Occurrence / $500,000 Aggregate
  • $1,000,000 Occurrence / $2,000,000 Aggregate

As you select higher limits the price of your policy will increase as well.

Bottles of liquor and bitters on a wooden shelf.

Do I Need General Liability Coverage to Purchase a Liquor Liability Policy?

Yes. In order to carry a liquor liability policy, you must have an active general liability policy in place. Insurance Canopy’s base plan includes both general and liquor liability coverage to make protecting your business easier.

How Much Does a Liquor Liability Policy Cost?

Liquor liability pricing varies based on your gross sales, coverage limits, your state’s regulations, and whether or not you decide to add endorsements.

Insurance Canopy offers an event liquor liability policy starting at $275 for three days of coverage or an annual policy starting at $35.42 per month. The annual policy includes the following:

  • $2,000,000 in general liability coverage
  • $300,000 in liquor liability coverage
  • $300,000 in coverage for damage to premises rented
  • $10,000 in tools and equipment coverage

You can increase your policy’s coverage limits at an extra cost, as well as add other policies to your plan such as professional liability, cyber liability, assault and battery, and more to best suit your business’s needs.

Learn more about liquor liability insurance and get started on your quote today!

Host Liquor Insurance

Who Does Host Liquor Cover?

Host liquor liability is a short-term insurance option for people who host private functions such as corporate events, weddings, birthday parties, and luncheons and allow alcohol to be sold and consumed at the event. They may or may not be selling or providing the alcohol themselves.

Many people may not realize they could be held liable for property damage or bodily injury that is caused by guests who drank alcohol at their event, but they can.

It doesn’t matter if your business actually sold alcohol to that individual—if you allowed them to drink at your event, you can be on the hook for medical costs, property damage, and legal fees.

People chatting around a table at a corporate party with bottles of alcohol in a bucket in the foreground.

How Much Does Host Liquor Insurance Cost?

While Insurance Canopy does not offer a host liquor policy, our trusted partner The Event Helper can get you the coverage you need starting at just $66.

When Should I Buy My Host Liquor Policy?

For your policy to be in force, you must purchase your host liquor insurance before your event starts.

If you’re running behind, don’t despair! You can purchase your policy from The Event Helper online in a matter of minutes and receive coverage immediately.

A close-up shot of a bartender pouring whiskey into a glass.

Get the Right Coverage for Your Business

While liquor liability and host liquor insurance are both intended to protect your business from costly claims from alcohol-related incidents, liquor liability insurance is best suited for professionals or businesses that sell and serve alcohol regularly as part of their business activities. On the other hand, host liquor insurance is better for private event hosts that are going to provide alcohol or allow it to be served at their event and need short-term coverage.

We hope this guide was helpful in explaining the difference between these two types of coverage! If you have any questions or aren’t sure which is best for your business, please don’t hesitate to contact us to speak with one of our licensed agents.

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Get Covered With

Liquor Liability Insurance

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