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General Guide To Liquor Liability

Liability insurance is available to safeguard establishments involved in the sale, service, and distribution of alcoholic beverages. If a client drinks too much at your establishment, you may be liable for any injuries they sustain or damage they create.

How Important Is It To Have Liquor Liability Insurance?

Liquor liability insurance is recommended for any company involved in the production, retail sale, wholesale distribution, or commercial service of alcoholic beverages. To name a few industries that might benefit from liquor liability insurance:

  • Eateries

  • Catering companies

  • Wine and beer merchants

  • Food marts

Liquor liability insurance is also crucial if your company operates in a state that enforces dram shop rules. Companies that knowingly sell or provide alcohol to visibly drunk customers may be held legally responsible for any resulting injuries or property damage.

What is Covered by Liquor Liability Insurance?

The claims that may be covered by liquor liability insurance include:

  • Assault and battery, such as drunk consumer assaults or batters another customer.

  • Driving under the influence occurs when a drunk customer of your establishment causes damage to the property or an accident that results in physical harm to another motorist.

  • Injuries sustained by patrons, staff, or other patrons, as a result of the guest's drinking behavior.

What Does Liquor Liability Insurance Not Cover?

The following are not protected by liquor liability insurance:

Slandering statements and libel

General liability insurance may cover slander and libel lawsuits if the policy does not specifically exclude alcohol-related lawsuits.

Property damage to your company

If a client becomes inebriated and causes damage to your company, your liquor liability insurance may not pay for the repairs. If anything happens to your company's property, commercial property insurance may assist cover the cost of repairs or replacement.

Alcohol-related incidents in young people

Although underage drinking situations are not covered by insurance, you might well have grounds for legal action if the youngster in question presented a convincing false ID. Instruct your staff to check identification cards and be on the watch for fakes.

The proportion of your business that involves the sale of alcoholic beverages may often determine your liquor liability insurance premium. So, liquor liability insurance for a bar may cost more than a grocery shop or restaurant.


Getting a quote is the easiest way to determine your company's liquor liability insurance prices because the criteria an insurance provider considers when establishing the price may vary.

At Second Western Insurance Services, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get 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. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!


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