Dram Shop Insurance






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How Dram Shop Insurance Protects Your Business

You need high-quality dram shop liability insurance designed for businesses that serve or furnish alcohol, including bartenders, caterers, concessionaires, food vendors, private chefs, and more. General liability insurance and dram shop coverage combined with additional policy options cover the daily risks of serving alcohol at an affordable cost that doesn’t break the bank.

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Comprehensive Dram Shop Insurance

Businesses that serve alcohol face many risks that, without dram shop insurance, could cost you thousands of dollars. Common risks include customer injury, property damage, and equipment loss. With general liability and additional coverages, Insurance Canopy protects your business from the risks associated with the industry.

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Dram Shop 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 dram shop coverage, 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.

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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. This extends your dram shop liability insurance 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.

Dram Shop Insurance 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.


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What is Dram Shop Insurance?

Dram shop insurance includes several coverages –general liability, liquor liability, products-completed operations, and more– designed to offer a safety net of financial 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. 

What Does Dram Shop Mean In Insurance?

Dram shop is a set of laws for businesses that sell or furnish alcohol. Each state has different dram shop laws. It is required by most states that you protect your alcohol-related business with dram shop insurance. Dram coverage includes general liability and can be known as liquor liability. Dram shop liability insurance protects your business from the often expensive costs of claims that are associated with alcohol. 

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. Each state requires businesses that serve or furnish alcohol to have dram shop 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

Dram shop insurance coverage includes liability coverage in accordance with state law and covers the daily risks associated with running an alcohol-serving business. It is important to note that a business that serves alcohol may need liquor liability in addition to general liability if alcohol is a part of its business operations.

The Ideal Dram Shop Insurance

Insurance Canopy combines general and liquor liability coverages to protect your business from the risks and claims associated with the alcohol-serving industry. Additional policy options are also available according to individual business needs.

Types of Dram Shop Insurance Coverages:

General Liability – Protects third-party bodily injury and property damage claims arising from accidents involving your dram shop business operation. Common claims include customer injuries, damage to personal property, and even food – or product-related sickness.

Liquor Liability – Dram shop insurance protects you from alcohol-related claims that your business is responsible for. This can include accidents involving customers you served alcohol to, particularly visibly intoxicated persons who cause accidents.

Need More Dram Shop Insurance?

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 run 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.

An example of dram shop law could include a restaurant that serves a special menu of cocktails during happy hour. At the close of happy hour, a customer had a bit too much to drink but drove away from the restaurant. As they were driving away they accidentally hit someone in the crosswalk. Both people were injured badly and unfortunately, you are held liable. This is where dram shop insurance comes into play, helping you with the claim costs. 

The purpose of dram shop laws is to protect the business owner when they serve alcohol. Dram shop laws require businesses to have dram shop insurance, which protects business owners legally and financially. 

43 states have dram shop laws. The 8 states that do not have dram shop laws include:

  • Delaware
  • Kansas
  • Louisiana
  • Maryland
  • Nebraska
  • Nevada
  • South Dakota 
  • Virginia

Dram shop liability insurance protects business owners from the financial consequence of insurance claims associated with accidents or injuries related to serving alcohol. 

Obtain dram shop insurance in just three simple steps:

  1. Create or sign into your Insurance Canopy account
  2. Fill out a quote application
  3. Enjoy the safety and security that dram shop coverage provides.
Choosing the right insurance is critical.
You can’t afford gaps in your coverage that could put you out of business.
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Need additional information before making a decision?

Give our team a call today at 844.520.6993

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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.

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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

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