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