Liquor Liability Insurance
Protect your business from the risks that come with serving alcohol.
Liquor liability insurance protects bars, restaurants, breweries, and event venues from lawsuits related to alcohol service. If a customer causes harm after being served alcohol—such as injury, property damage, or a DUI-related accident—your business could be held responsible.
Even with trained staff and responsible service, alcohol-related incidents happen. This coverage helps pay for legal fees, settlements, and other costs so one accident doesn’t threaten your business.
What is liquor liability insurance?
Liquor liability insurance helps cover the financial consequences of serving or selling alcohol. It protects your business when intoxicated patrons cause harm to others or property after being served.
It can cover:
Third-party bodily injury or property damage
Legal defense and court costs
Medical expenses
Settlements or judgments
Incidents involving overserved patrons (e.g., fights, accidents, DUI-related injuries)
How to get coverage
Depending on your business, liquor liability coverage can be purchased in two ways:
Option 1: Add-on Coverage
Available for small businesses with limited alcohol sales, this can be added to your Business Owner’s Policy (BOP).
Ideal for: cafés, small restaurants, or caterers where alcohol is a small portion of sales.
Option 2: Standalone Liquor Liability Policy
Recommended for businesses where alcohol is a major revenue source. This option typically provides broader protection and may include:
Assault & battery coverage (often excluded in general liability policies)
Higher limits and defense coverage tailored for nightlife or event venues
Who needs liquor liability insurance?
If your business sells, serves, or allows alcohol consumption on the premises, you should consider this coverage. Even if alcohol isn’t your main source of revenue, a single claim could cost thousands.
You likely need it if:
You serve or sell alcohol to customers
You operate a bar, restaurant, brewery, nightclub, or event venue
You employ bartenders, servers, or security staff
You host private events, tastings, or special functions
Alcohol sales make up a significant portion of your revenue
Real-life scenarios
Example scenarios:
A patron leaves your restaurant intoxicated and causes a car accident. Their lawyer sues your business for negligent service.
A fight breaks out after a night of drinking, and an injured customer files a claim for medical costs.
Your bartender accidentally serves alcohol to a minor with a fake ID, leading to fines and legal fees.
Liquor liability coverage helps protect your business, your staff, and your guests—so you can focus on good service, not legal risks.