Liquor Liability Insurance

Some states, such as New York and Michigan, require you to carry liquor liability coverage if you sell, serve, or provide alcohol. Other states may not have a statewide mandate, but specific counties could require proof of insurance before issuing a liquor license.

Dram shop laws hold alcohol-serving businesses and individuals legally responsible for damages caused by intoxicated patrons or for serving alcohol to minors. This includes medical costs, court fees, legal judgments, and repair expenses.

42 states and the District of Columbia have dram shop laws, and regulations vary from state to state.

Yes! Insurance Canopy offers short-term and annual liquor liability insurance to suit your business. Our 1–3 day policy starts at $275 and provides the essential coverage you need to participate in events.

No, these are two different types of coverage. Host liquor insurance is short-term coverage for event hosts who want to serve alcohol at a gathering, and they aren’t in the business of selling alcohol.

Like liquor liability insurance, it can cover the cost of bodily injury or property damage caused by an intoxicated guest, but it only covers people and businesses who do not usually provide or sell alcoholic beverages.

The best way to reduce your liquor insurance costs is to manage your risk. If you have a history of making claims, your premiums could increase. Taking preventative and proactive measures decreases the chances of an accident.

The best ways to mitigate your risk include:

• Always check identification
• Never serve a visibly intoxicated guest
• Ask security to remove belligerent or inappropriate customers
• Offer snacks and water to reduce the chances of over-intoxication

To submit a claim, follow these steps:

1. Log in to your online account
2. Find the “Manage Policies” section
3. Click on “File a Claim” and fill out your info
4. Submit your claim

A claims adjuster will contact you within 24–48 hours to discuss your claim and answer any questions you may have.