Liquor Liability Insurance

Liquor liability insurance protects businesses that sell or serve alcohol—like restaurants, bars, or event venues—from legal and financial consequences if a patron causes harm after drinking on the premises. Whether it’s a physical altercation, property damage, or a DUI-related accident, your business could be held liable. Even responsible alcohol service doesn’t eliminate the risk, which is why this coverage is essential.

What is liquor liability insurance?

Liquor liability insurance provides protection for businesses involved in the sale or service of alcohol. It helps cover claims related to intoxicated patrons who cause harm to others or property.

It can cover:

  • Third-party bodily injury or property damage

  • Legal defense costs

  • Medical expenses

  • Settlements or court judgments

  • Incidents involving overserved patrons (e.g., fights, accidents, DUI-related harm)

Do I need it?

You should strongly consider liquor liability insurance if:

  • You serve or sell alcohol to customers

  • You operate in a high-traffic venue like a bar, restaurant, or event space

  • You have security staff or a bouncer on-site

  • Alcohol sales represent a significant portion of your revenue

  • You host special events, tastings, or private parties with alcohol

Even with trained staff and responsible service, alcohol-related claims can happen—and they’re often expensive.

How can I purchase it?

Depending on your business, you have a few options for obtaining liquor liability insurance:

  • Add-on to your Business Owners Policy (BOP)

    • Available for some small businesses with limited alcohol sales

  • Standalone liquor liability policy

    • Recommended for bars, breweries, nightclubs, or restaurants with high alcohol sales

    • Often includes assault and battery coverage, which many general policies exclude

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