Liquor liability insurance protects businesses that distribute or serve alcohol. These might include restaurants, bars, liquor stores, wineries, and convenience stores. If there is an issue involving alcohol, someone might sue your company due to intoxicated customers served by your business. The policies cover legal fees, medical costs, and settlements. Here is what liquor liability insurance covers:
Drunk Driving
If your business continues to serve a customer until visibly intoxicated, and they cause an accident while driving drunk, the injured person might be able to file a claim against your establishment. If the victim sustained injuries from the accident, the coverage pays for the medical expenses. This includes hospital visits, medical equipment, and prescriptions. In case of vehicle damage, liquor liability insurance covers vehicle repair costs. The coverage may also cover lost wages for the period the injured are unable to work as they recover.
Assault and Battery
One inherent risk of serving alcohol is customer rowdiness. An assault may occur if an intoxicated person intentionally threatens someone or harasses them to the point where they are afraid. A battery is the physical act of harming a person. If an intoxicated person assaults or batters, the injured may demand compensation for the emotional and physical injuries and damaged valuables. This insurance may also kick in if you and the victim agree to an out-of-court settlement. It will pay for any fees that may arise from those meetings.
The policy may pay for the costs incurred by those directly involved in the altercation and harm suffered by bystanders. This coverage also applies when someone hosts an event with a BYOB policy on alcohol.
Property Damage
If an independent bartender works at a special event where they serve your establishment’s alcohol supply and their own property gets damaged, this insurance may cover costs. The host has the right to file a claim against the alcohol server or distributor and seek compensation for the cost of repairing or replacing the damaged items. This policy is handy if an employee accidentally causes damage to your premises on the job. The policy may be customized to cover property damage to a building, a fence, or a car.
Slip and Fall
Depending on the state law, businesses that over-serve alcohol to patrons could be held liable for damages or injuries sustained by these individuals. If an intoxicated person slips and falls on your property, they may file a personal injury claim against your business. The liquor liability policy covers the legal fees and medical expenses, including ongoing care. In severe cases, the policy covers the lost wages during the recovery period.
Invest in Comprehensive Liquor Liability Insurance
Liquor liability insurance protects your business from unforeseen incidents caused by your patrons. It also may cover damage caused by unforeseen weather. Having a comprehensive policy protects you from being caught off guard. It ensures you aren’t without enough money to pay for legal fees, medical bills, and property damage when someone sues you. Partner with a reliable insurance provider to get coverage that suits your needs. The insurer will also advise you on protecting your business from lawsuits.
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Refresh Date: August 21, 2025
