Liquor Liability Insurance
Safeguard your business with liquor liability coverage today!
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What Is Liquor Liability Insurance Coverage?
Liquor liability insurance protects businesses that sell, serve, or provide alcohol as part of their business.
If an intoxicated customer injures somebody or causes property damage, you could be held personally responsible. Your insurance can absorb some or all of your out-of-pocket costs for claims like these.
What Is Covered by Liquor Liability Insurance?
Your alcohol liability insurance kicks in if a drunk customer causes bodily injuries or property damage. It can cover expenses such as medical bills, legal fees, judgments, and repair costs.
Most states have dram shop laws that hold bartenders, servers, and businesses responsible when an intoxicated customer causes injuries or damages. This law typically applies if you accidentally overserve a customer or serve alcohol to an underage guest.
If you’re found financially liable due to the sale or service of alcohol, your liquor liability insurance safeguards your business.
What Is Not Covered by Liquor Liability Insurance?
Liquor liability insurance does not cover claims unrelated to alcohol. For example, if a customer trips over a barstool or has an allergic reaction to a drink garnish, your general liability insurance would respond to the claim.
How Much Does Liquor Liability Insurance Cost?
The cost of liquor liability coverage starts as low as $35.42 per month for an annual policy. Insurance Canopy also offers a 1–3 day policy starting at $275 per event.
Our annual policy includes both general and liquor liability insurance, so your business is covered from all angles.
Do I Need Liquor Liability Insurance?
Anybody who serves or sells alcohol needs liquor liability coverage. In fact, several states legally require you to have it, plus many employers expect those who serve alcoholic beverages (like caterers or mobile bartenders) to carry insurance before they can work.
Even if it’s not required, insurance can save you from paying hundreds of thousands of dollars in the event of an alcohol-related accident.
If you want to serve alcohol at a party or event but your business doesn’t typically sell alcohol, you need host liquor insurance, which is short-term coverage that protects you from financial liability if an intoxicated guest causes damages.
Insurance Canopy offers protection for a wide array of alcohol-serving businesses.
Common Alcohol Liability Insurance Claims Examples
Liquor liability insurance covers a variety of claims that you may face in your role. Here are a few real-world examples our policyholders have faced:
A guest had several beers before leaving a corporate event. As he backed out of his parking space, he hit a pedestrian, breaking her leg. She sued the catering bartender for injuries and emotional distress, winning over $21,000 in compensation.
Two intoxicated customers got into a fistfight at a bar. One man shot and fatally wounded the other. The victim’s family sued the bartender for the wrongful death of their loved one due to her negligence in overserving the assailant. They won $40,878.
A bartender failed to ask for identification and served an underage patron. She left the event and crashed her car and suffered severe injuries. Due to the state’s dram shop laws, the bartender had to pay over half a million dollars to the family.
In each of these cases, liquor liability insurance saved these policyholders from paying out of pocket.
Get the Best Liquor Liability Insurance With Insurance Canopy
- Affordable, comprehensive coverage
- Free online liquor liability insurance quote
- Both short- and long-term policy options
- Customizable coverage
- Instant access to your Certificate of Insurance (COI)
Liquor Liability Coverage Details
*Pricing varies depending on limits selected.
Liquor Liability Insurance Limits Options
Occurrence Limit*
$100,000 – $1,000,000
Aggregate Limit*
$300,000 – $2,000,000
General Liability Limits
Products & Completed Operations Aggregate
$1,000,000
Personal & Advertising Injury
$1,000,000
Each Occurrence Limit
$1,000,000
Damage to Premises Rented to You
$100,000
Medical Expense Limit
$5,000
FAQs About Liquor Liability Coverage
Is Liquor Liability Insurance Required by Law?
Many areas require you to carry liquor liability coverage if you sell, serve, or provide alcohol. This varies from state to state, so check your local laws and regulations before starting.
What Are “Dram Shop” Laws?
Dram shop laws hold businesses that serve or sell alcohol liable for damages caused by intoxicated patrons. While laws vary between states, most include specific rules about overserving customers or serving people under 21 years old.
If a drunk customer hurts somebody or causes property damage, dram shop laws say that the person or business that served them is financially responsible. This can include medical costs, court fees, legal judgments, repair expenses, and more.
Can I Get Liquor Liability Insurance for a Single Event?
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.
How Can I Reduce the Cost of My Liquor Liability Insurance?
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 visibility intoxicated guestw
- Ask security to remove belligerent or inappropriate customers
- Offer snacks and water to reduce the chances of over-intoxication
If you serve multiple events per year, you can also save by purchasing an annual policy rather than multiple event policies.
How Do I File a Liquor Liability Claim?
To submit a claim, follow these four easy steps:
- Log in to your online account
- Find the “Manage Policies” section
- Click on “File a Claim” and fill out your info
- Submit your claim
A claims adjuster will contact you within 24–48 hours to discuss your claim and answer any questions you may have.
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