Liquor Liability Insurance

Liquor Liability Insurance covers establishments that sell any type of alcohol for on premises or off premises consumption. This includes establishments that only sell beer and wine. If you have any type of alcohol sales you have a liquor liability exposure.

Employers may be held liability for employees who sell or serve alcohol in violation of state laws. The negligent service to an intoxicated or underage person can produce substantial verdicts or settlements. Even if an establishment is not found liable the average cost to defend a claim is $150,000.

Assault & Battery can also be included as part of the liquor liability coverage.

Claims Examples:

A patron and her boyfriend arrived at the insured’s bar around 9:00 P.M. After each had 4 or 5 drinks they left the bar. An hour later, their vehicle crossed over a major highway and struck an oncoming van. The driver of the van had extensive injuries and required numerous surgeries. The Blood Alcohol of the patron was .22 twice the legal limit. The insured was sued for violation of the Dram Shop Act, servicing an intoxicated person, and failing to property hire and train employees. The claim was investigated and later settled for $500,000


A 16 year old boy purchased beer from a local retail store where his ID was not checked. The beer was taken to a party where minors were in attendance. The boy’s 20 year old sister arrived to take him home, and also consumed some beer. On the way home she flipped her convertible, and her brother was killed in the accident. The mother filed suit against the retail store. Even though the sister caused the accident and did not purchase the alcohol the retail store was held liable due to illegal sale to a minor. The claim settled for $580,000 in damages and there was an additional $1000,000 in defense costs.