770-723-9901
info@insurecstore.com
770-723-9901
info@insurecstore.com

What is Liquor Liability Insurance?

Liquor liability insurance is a specialized policy designed to protect businesses that sell, serve, or distribute alcoholic beverages. It covers claims arising from alcohol-related incidents, such as property damage, bodily injuries, or lawsuits caused by an intoxicated customer. This type of insurance is essential for bars, restaurants, and other establishments with liquor sales. It helps cover legal fees, settlement, and medical expenses, ensuring your business stays financially protected.

What is Included in a Liquor Liability Insurance Policy?

A liquor liability insurance policy includes coverage for alcohol-related claims like bodily injuries, property damage, or lawsuits caused by intoxicated customers. It also covers legal fees and court settlements tied to selling alcohol. Some policies include protection against liquor law violations or fines, ensuring compliance with Dram shop laws. It covers accidents involving intoxicated patrons. Here is a quick description of protections that are offered to businesses under this policy:

Bodily Injury Coverage

Protects against claims of injuries caused by intoxicated patrons, making sure medical costs, legal liabilities, and related expenses are covered.

Property Damage Coverage

Covers third-party property damages resulting from alcohol-related incidents, repairs or replacements, helping reduce financial risks for your business.

Legal Defense Costs

Provides coverage for attorney fees, court expenses, and legal settlements if your business faces alcohol-related lawsuits or intoxicated patrons.

Alcohol-Related Accidents

Coverage for accidents that occur as a result of serving alcohol, ensuring your business is protected from associated costs and liabilities, is provided.

Injury or Damage Caused by Intoxicated Patrons

In case of any injury or damage caused by intoxicated customers, your business will be protected from lawsuits and claims due to alcohol consumption.

Claims for Serving Minors

Covers legal expenses and liability if your business is sued for serving alcohol to minors, ensuring you’re protected under liquor laws.

Over-Serving Liability

Offers protection against liability for serving alcohol to customers who are already intoxicated, helping cover damages resulting from over-serving.

Third-Party Liability

Make sure your business is protected from claims made by third parties for damages caused by alcohol-related incidents, reducing potential financial strain.

Medical Expenses

Coverage for medical costs due to injuries caused by alcohol-related incidents, whether to customers or employees, to manage unforeseen medical expenses.

Punitive Damages

Covers additional damages awarded in cases where the business is found grossly negligent, protecting your business from significant financial penalties.

What is Not Covered Under Liquor Liability Insurance?

  • Damage to Your Own Property

  • Employee Injuries

  • Damage Resulting from Illegal Acts (e.g., underage drinking)

  • Personal Injury Claims Not Related to Alcohol Consumption

  • Product Defects (unless added under product liability coverage)

  • Accidents Outside of Business Premises

  • Drunk Driving Accidents Not Related to Your Business

  • Losses Due to Breach of Contract

  • Damage or Injury from Alcohol Served Without Proper Permits

  • Liability for Serving Alcohol to Intoxicated Persons (unless included in some cases)

How Much Does Liquor Liability Insurance Cost?

Liquor liability insurance costs vary in accordance with factors like business type, alcohol sales percentage, and location. On average, small businesses pay about $45 per month ($542 annually). However, it is essential to obtain personalized quotes to determine the exact cost for your business.

Who Needs Liquor Liability Insurance?

Liquor liability insurance is essential for businesses that serve, sell, or distribute alcohol, such as bars, restaurants, liquor stores, or event venues. It protects against claims related to alcohol-related incidents, like property damage or third-party injuries. If your business involves alcohol service or sales, this coverage is crucial for financial protection and legal compliance. Following is a list of groups that can benefit from liquor liability insurance, ensuring compliance with the law:

  • Bars and Pubs

  • Restaurants and Food Service Businesses

  • Nightclubs and Dance Venues

  • Event Planners and Coordinators

  • Catering Companies

  • Brewery and Distillery Owners

  • Wineries

  • Liquor Stores

  • Convenience Stores Selling Alcohol

  • Golf Courses and Country Clubs

  • Hotels and Resorts with Bars

  • Vineyards and Tasting Rooms

  • Private Clubs and Lounges

  • Mobile Beverage Services (e.g., food trucks or catering)

  • Cafes and Coffee Shops Serving Alcohol

Get a Free Liquor Liability Insurance Quote

Looking for a free liquor liability insurance quote for your business? Insure C-Store has got you covered! Simply enter your full name and phone number and select your preferred business property before pressing submit. It will lead you to a form comprising questions about personal and property details, location address, current insurance provider, etc. Once you complete and submit the form, we will contact you.

We will help you find just the perfect plan to secure your business - contact us today!

OR

Call an Agent
Visit Our Office

Frequently Asked Liquor Liability Insurance Questions

Ans) The amount of liquor liability insurance you need depends on the size of your establishment, the type of events you host, and the amount of alcohol you serve. Generally, the coverage should be enough to cover potential claims resulting from incidents like intoxicated guests causing injury or property damage. Your insurer can assess your specific needs and help determine the appropriate policy limits to ensure full protection.

Ans) Yes, liquor liability insurance is typically required for a 1-day permit, especially for temporary events like parties or special gatherings where alcohol is served. Many event venues or local authorities require proof of insurance to protect against potential liabilities that may arise during the event. It’s advisable to check with the permit-issuing authority to ensure you meet all legal requirements.

Ans) If your liquor liability insurance denies a claim, you may need to review the terms of your policy to understand the reasons behind the denial. Common reasons for denial include non-compliance with policy requirements, such as over-serving alcohol or not following local laws. If you believe the denial is unfair, you can appeal the decision or seek legal advice to understand your options for disputing the claim.

Ans) You need liquor liability insurance whenever your business or event involves the sale, distribution, or service of alcohol. This includes bars, restaurants, nightclubs, and event venues. It’s also crucial if you're hosting a one-time event where alcohol will be served, ensuring that you're covered against potential claims resulting from intoxicated patrons.