Dram Shop Insurance
Protect your business in just 10 minutes with online dram shop insurance that meets state requirements.
*Prices vary by state
How Dram Shop Insurance Protects Your Business
Dram Shop Coverage for Your Business
If your business serves alcohol, you may face many risks that could cost 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.
Comply With the Dram Shop Law in Your State
According to dram shop law, you can be held liable for accidents involving individuals you served alcohol to, especially visibly intoxicated persons and minors. That’s why it’s critical 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.
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 on your policy. 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.
$2,000,000
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.
$1,000,000
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
$1,000,000
The maximum the insurance carrier will pay for a bodily injury or property damage claim that you become legally obligated to pay.
$1,000,000
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.
$100,000
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.
$5,000
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 and can provide coverage to various businesses including, bartenders, caterers, food vendors, private chefs, and more.
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. Common businesses with this requirement include:
- Bartenders
- Caterers
- Concessionaires
- Food Vendors
- Private Chefs
The Ideal Dram Shop Insurance
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, and Insurance Canopy combines these coverages as well as other add-on coverage options to keep your business operating safely.
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 protection with these additional coverages that 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 and battery—either threatened or actual—from your business. It also protects against claims that your business failed to prevent assault and 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
What Is Dram Shop Law?
Dram shop law is a statute that holds a restaurant, bar, or other business serving alcohol responsible—or liable—for any accidents that may occur from an intoxicated customer. 42 states and the District of Columbia 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.
What Risks Do Alcohol-Serving Businesses Face?
Alcohol-serving businesses face a variety of risks every day, including 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 you can take safety precautions to reduce risks like these, there is no way to fully eliminate them. That’s why you need liability insurance to protect your business from these potential financial burdens.
What Claims Does Dram Insurance Cover?
Dram shop insurance can cover a variety of claims, from third-party bodily injury and property damage claims to liquor liability claims, assault and battery claims, cyber liability claims, and more. Insurance claims can cost your business thousands of dollars. Without insurance, you may be required to cover the cost out of pocket.
How Much Does Dram Shop Insurance Cost?
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 $550.
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Why Should I Get Dram Shop Insurance?
According to dram shop law, businesses that serve or furnish alcohol are required to have liquor liability insurance.
That said, there are many additional benefits that come with protecting your business, including the following:
- It establishes credibility with potential clients and it opens opportunities for more work
- It mitigates the financial impact that insurance claims can have on your business
What Is an Example of a Dram Shop Law?
Consider a restaurant that serves a special menu of cocktails during happy hour. At the end of happy hour, one customer has a bit too much to drink but drives home from the restaurant.
As they drive away, they accidentally hit someone in the crosswalk. Both people are injured badly, and unfortunately the restaurant is held liable. Dram shop insurance can help the restaurant with the claim costs.
What Is the Purpose of Dram Shop Laws?
The purpose of dram shop laws is to protect the business owner from the cost of claims associated with accidents or injuries related to serving alcohol by being covered with insurance.
Which States Have Dram Shop Laws?
42 states and the District of Columbia have dram shop laws. The eight states that do not have dram shop laws include:
- Delaware
- Kansas
- Louisiana
- Maryland
- Nebraska
- Nevada
- South Dakota
- Virginia
How Do I Get Dram Shop Insurance?
Obtain dram shop insurance in just three simple steps:
- Create or sign into your Insurance Canopy account
- Fill out a quote application
- Enjoy the safety and security that dram shop coverage provides!
Need additional information before making a decision?
Give our team a call today at 844.520.6993
Dependable Dram Shop Insurance Coverage
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.
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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