top of page
  • nickschrader100

Basics Of Liquor Liability

Due to the increased risks and claims associated with providing alcohol, getting proper coverage can be difficult because not all insurers provide liquor liability coverage.

However, suppose you own a company that distributes alcoholic beverages. In that case, you may be held accountable for the behavior of "clearly drunken" persons who were provided or sold alcohol at your venue or event.

To put it simply, whether your company sells wines, alcohol, beers, or spirits, you must ensure that you are adequately insured. This article will enlighten you on the topic of liquor liability. Continue reading.

What is Liquor Liability?

The legal and financial obligation for the behavior of persons who consume alcohol at its institution is liquor liability.

According to liquor liability rules, your company can be held accountable for bodily harm and property damage caused by someone you wrongly provided alcohol to.

What is Liquor Liability Insurance?

Liquor liability insurance may protect firms that make, serve, or sell alcohol. It is a business policy that may compensate for certain losses caused by selling, serving, or providing alcoholic drinks.

This sort of business insurance may assist cover claims for physical injury or property damage caused by an intoxicated individual after your business staff provides them with another drink.

For example, if a customer at your establishment becomes drunk and injures a third party or damages property, you might be held accountable for the damages. And this liquor liability insurance may protect both your business and the general public against injury, death, and property damage claims.

Who Needs Liquor Liability Insurance?

If your company manufactures, sells, distributes, or serves alcohol to consumers, you should obtain liquor liability insurance. Some examples of businesses and events that may require liquor liability insurance include:

  • breweries

  • vineyards

  • restaurants

  • liquor stores

  • non-profit fundraising event

  • supermarkets

  • convenience stores

  • concert events

  • distilleries

  • pubs

What Does Liquor Liability Insurance Cover?

It's critical to account for frequent hazards when safeguarding your company against liabilities. Some of the common risks that your insurance provider may cover are as follows:

Drunk Driving

If you offer alcoholic beverages to someone who is already inebriated and he caused property damage or physical harm while driving, your company may be held liable.

Property Damage

When you serve an alcoholic beverage to drunk customers and become destructive, your company will be liable for the damages incurred.

Assault and Battery

When intoxicated, they may become aggressive and pick a fight with another person. So, if your organization continues to offer them alcoholic beverages when they are intoxicated, and they injure another person, you will also be held accountable.


Selling alcohol carries a risk, especially if you cannot manage the individual to whom you are supplying. As a result, it is advisable to get insurance to protect you from physical damage and bodily injury claims.

At Second Western Insurance Services, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (818) 952-5203. Get your free quote today by CLICKING HERE. Any coverage discussed is not guaranteed. Contact us today to go over your specific needs and we are happy to help you find a policy that works for you and your budget!

bottom of page