Dram Shop Insurance




Protect Your Business with Dram Shop Insurance

*The cost of coverage varies by state

Insurance Canopy & Dram Shop Insurance

Insurance Canopy provides high-quality liability insurance to businesses that serve or furnish alcohol, including bartenders, caterers, concessionaires, food vendors, private chefs and more. With general and liquor liability coverage as well as additional policy options, our Dram Shop annual and event policies cover the daily risks of serving alcohol at an affordable cost that doesn’t break the bank.

Our Partners
Hanover Insurance Group Logo
The Hartford company logo
Great American Insurance Group logo
Mid-Continent Group Logo
Progressive Logo
USLI logo
certificate icon

Comprehensive Coverage

As a business that serves alcohol, you face many risks that, without liability insurance, could cost you thousands of dollars. Common risks include customer injury, property damage, and equipment loss. With general liability, liquor liability, and more, Insurance Canopy protects your business from the risks associated with the industry.

Umbrella Icon

Liquor Liability Insurance

According to Dram Shop law, you can be held liable for accidents involving individuals you served alcohol to, especially visibly intoxicated persons and minors. As such, it’s critically important to protect your business with liquor liability insurance, which can mitigate the out-of-pocket costs associated with liquor liability claims. Our policy meets state dram shop laws while keeping your business protected with dram shop insurance.

user plus icon

Unlimited Additional Insureds

If you run a business that operates at different locations, like a caterer or private bartender, you may be required to include locations you work at as an additional insured, which extends your liability coverage to the venue or event if an accident occurs involving your business. Insurance Canopy provides unlimited additional insureds for all annual policyholders for just $30 a year.

Coverage Details

Basic Coverage Limits Shown Below

The most your policy will pay for bodily injury and property damage claims that you become legally obligated to pay.


The maximum amount your policy will pay for bodily injury and property damage claims that result from the products you use to perform your services. However, it does not cover your products that are sold or distributed.


The amount that your policy will pay for claims arising out of one or more of the following offenses: – False Arrest, detention or imprisonment
– Malicious prosecution
– Wrongful Eviction or Wrongful Entry
– Oral or written publications that slander or libels a person or organization
– Oral or written publication or material that violates a person’s right of privacy
– The use of another’s advertising idea in your advertisement


The maximum the insurance carrier will pay for a bodily injury or property damage claim that you become legally obligated to pay.


Applies to damage by fire to premises rented to the insured and to damage regardless of cause to premises (including contents) occupied by the insured for 7 days or less.


Reimburses others, without regard to the insured’s liability, for medical or funeral expenses incurred by such persons as a result of bodily injury (BI) or death sustained by accident under the conditions specified in the policy.


Still doing your research?
Have Questions?
Our licensed agents are available to answer any questions you may have (se habla español)
What is Dram Shop Insurance?

Dram shop insurance is a host of coverages –general liability, liquor liability, products-completed operations, and more– designed to offer a safety net of protection. This insurance can mitigate, or in some cases, eliminate the out-of-pocket cost of liquor-related claims. 

Dram shop insurance is also referred to as liquor liability insurance. Dram shop insurance can provide coverage to various businesses including, bartenders, caterers, food vendors, private chefs, and more. 

The Ideal Dram Shop Coverage

Insurance Canopy offers a comprehensive combination of general and liquor liability coverages to protect your business from the risks associated with the industry. Additional policy options are also available according to individual business needs.

  • General LiabilityProtects from third-party bodily injury and property damage claims that arise from accidents involving your business operation. Common claims include customer injuries, damage to personal property, and even food – or product-related sickness.

  • Liquor LiabilityDram Shop law insurance protects from claims that you are responsible for. This can include accidents involving customers you served alcohol to, particularly visibly intoxicated persons and minors.

What Kinds of Businesses Need Dram Shop Insurance?

If you serve or furnish alcohol as part of your business, you are required by law to cover your business with liquor liability insurance. Some businesses that are required by law to have dram shop insurance include but are not limited to:

  • Bartenders

  • Caterers

  • Concessionaires

  • Food Vendors

  • Private Chefs

Insurance Canopy’s Dram Shop Insurance plan includes liquor liability coverage in accordance with state law as well as general liability insurance to cover the daily risks associated with running an alcohol-serving business. It is important to note that some businesses may need liquor liability in addition to general liability if alcohol is a part of their business operations.

Need More Dram Shop Coverage?

Strengthen your dram shop insurance protection with these additional coverages. These coverages can be added to your policy at any time and provide a more robust policy.

  • Assault & Battery ($106) – Protects from third-party bodily injury, property damage, and personal advertising injury claims that arise from assault & battery—either threatened or actual—from your business. It also protects against claims that your business failed to prevent assault & battery when it should have done so.

  • Cyber Liability ($99) – Protects from first- and third-party claims that arise as a result of a cyber security breach within your business. Common claims include repairing or replacing compromised equipment, recovering lost data, and compensation for lost customer data.

  • Additional Insureds ($30) – Protects venues and events where you might perform your business operation from third-party claims that arise from accidents involving your business. It is common practice for locations to require you to include them as an additional insured on your insurance policy.

Questions About Dram Shop Liquor Liability Insurance

Dram shop law is a statute that holds a restaurant, bar, or business serving alcohol, responsible –or liable– for any accidents that may occur from an intoxicated customer. Twenty-two states have dram shop liability laws. 

What this means for business owners is that if a customer is served too much alcohol and causes an accident, the business is held liable for the accident and will have to pay the resulting legal or medical fees. Dram shop insurance can help mitigate or even eliminate those costs.

Alcohol-serving businesses face a variety of risks every day. Common risks include a customer tripping and injuring themselves, inadvertently damaging a patron’s property, or breaking something at the location where you do business. You also run the risk of over-serving alcohol to patrons or accidentally serving alcohol to minors. Fights could break out and people could get injured or your business could fall victim to cyber crime.

While alcohol-serving businesses can take safety precautions to reduce the risk of accidents occurring, there is no way to fully eliminate it. That’s why you need liability insurance to protect your business from the financial burden that risks can put on it.

Dram shop insurance can cover a variety of claims, from third-party bodily injury and property damage claims to liquor liability claims, assault & battery claims, cyber liability claims, and more. Insurance claims can cost your business thousands of dollars. Without coverage, you may be required to cover the cost out of pocket. Dram Shop Insurance can remove the financial burden that insurance risk places upon your business.

The cost of dram shop insurance varies by state and the nature of your business (services offered, liquor sales, etc.). Depending on the state, the starting rate for a plan including general and liquor liability can start as low as $400. For a more accurate estimate on the cost of dram shop insurance, please follow the link below to receive a quote according to your business needs.

Get A Quote

According to dram shop law, as the owner of a business that serves or furnishes alcohol, you are required to have liquor liability insurance. That said, there are many benefits that come with protecting your business. It establishes credibility with potential clients and it opens opportunities for more work. It also mitigates the financial impact that insurance claims can have on your business by reducing or altogether eliminating the out-of-pocket cost you may be liable to pay should your business get involved in an accident.

Choosing the right insurance is critical.
You can’t afford gaps in your coverage that could put you out of business.
bartender making drink

Need additional information before making a decision?

Give our team a call today at 844.520.6993

Feefo logo

Dram Shop Insurance

Annual Policy: Dram Shop Insurance from Insurance Canopy offers the essential coverage that your alcohol-serving business requires. With general and liquor liability, it can protect your business from the many risks associated with the industry.

US map
Dram Shop Insurance
Available in 41 States

Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming

Related Articles

If you are considering starting an alcohol-serving business, then you have probably spent some time looking at dram shop insurance. Insurance can be tricky, though, with all the different policies, providers…
For many people, owning an event bartending business is a dream come…
There are many reasons why a business owner might want to sell…