Regaining Your Liquor License After Revocation

States and municipalities regulate alcohol sales in hospitality venues to ensure the public can enjoy a good time without threatening the safety of others. Restaurants, bars, hotels and other businesses that serve alcohol need a license to sell liquor, and that license comes with rules. When an establishment doesn’t follow those rules, it can lose the right to sell alcohol, which is a big problem for revenue.

How do you lose your liquor license? In most cases, it comes down to a few common violations that you can prevent with good policies and well-trained staff.

The good news is that a liquor license revocation is not often permanent. Most businesses that have their liquor licenses revoked can get them back, and in some cases, liquor licenses can be regained in just a matter of weeks. Understanding common reasons why liquor licenses get revoked can help your business avoid pitfalls that may lead to a revocation. Knowing how to navigate the process of restoring a revoked liquor license can help you resolve issues faster and recover a key source of revenue.

Tabak Insurance Agency specializes in restaurant insurance, nightclub, and bar insurance, and also provides liquor liability insurance, general liability insurance, and commercial property coverage. We have seen several instances where businesses can lose their licenses, which can often be avoided. We are here to answer any questions about our policies and help you find the right amount of coverage. In the event that you do lose your liquor license, there are steps you can take to regain it.

group of friends drinking beer

Common Violations That Put a License at Risk

Governments have a vested interest in regulating alcohol, as irresponsible use can lead to negative social impacts and threats to public safety.

Facilities that serve alcohol are a key frontline in these efforts. Governments not only require them to maintain a liquor license but also recommend coverage such as restaurant insurance, bar insurance, and liquor liability insurance to protect against potential risks. Bars, restaurants, and other facilities can and do lose their licenses through non-compliance with laws regarding the sale of alcohol. Most liquor license violations come from everyday situations behind the bar. Knowing what regulators look for can help you avoid them.

Serving Minors

The legal drinking age in the U.S. is 21, and state and local law enforcement take underage sales seriously. Fake IDs can be hard to spot, especially on a busy night. A simple policy, such as checking an ID for anyone who appears under 40, takes the guesswork out of it. Staff who knowingly serve a minor may also face criminal charges.

Selling Outside Legal Hours

Liquor licenses only allow alcohol sales during certain hours. States set these hours, and some cities and counties set stricter limits. If your area requires sales to stop at 2 a.m., a drink sold at 2:15 a.m. is a violation. Caterers and mobile bars should check the rules for each event location, since hours can vary from one county to the next.

Overserving Guests

Most states have laws against serving people who are obviously intoxicated. Overserving can cost you your license, and it can also lead to a lawsuit if that guest injures someone after leaving. Under dram shop laws, the business that served the alcohol can be held responsible. Staff should know the signs of intoxication and know when to stop serving.

Staff Without Required Training

Many states and cities require responsible beverage service training for anyone who serves or sells alcohol. If your staff hasn’t completed required training, that alone can be a violation. In some states, documented training also protects the business when an employee makes a mistake.

Fights and Disturbances

Establishments that are frequent locations of fights, police calls and other disturbances can lose their license quickly. Security staff, good lighting and a clear plan for removing problem guests can keep small incidents from becoming a pattern.

If You Lose Your Liquor License, Can You Get It Back?

In many cases, yes. A suspension ends once its terms are met. A revocation usually takes more work, often an appeal, a new application or both. Every state and municipality handles this differently, but these steps apply in most places:

Read the notice carefully. Appeal or hearing deadlines are often short.
Gather all necessary information: incident reports, training records, ID scan logs and any video related to the violation.
Hire an attorney who handles liquor license cases in your state.
Pay any fines or penalties on time.
Fix the problem that caused the violation, whether that means retraining staff, changing policies or adding security.
Apply for a new license when you become eligible, and be ready to show what has changed.

Insurance Support From a Hospitality-Only Agency

Tabak Insurance Agency works only with hospitality businesses. Because hospitality is our entire book of business, we have access to insurance markets that other agencies don’t. We also know how to present your business to carriers in a way that gets lower rates.

Liquor liability coverage from Tabak protects the following businesses when an alcohol-related incident leads to a claim:

We also help clients with inspections and audits throughout the year, not only at renewal. Get a quote online or call 800-806-0689 to talk with our team.

Frequently Asked Questions

Can I pay a fine instead of serving a liquor license suspension?

It depends on your state. In Texas, the Alcoholic Beverage Commission must offer a civil penalty in place of a suspension for many violations. The penalty is based on each day the suspension would have lasted. For more serious violations, such as sales to minors, breaches of the peace and sales outside legal hours, the commission decides whether to offer this option. The penalty has to be paid within a short deadline, or the suspension takes effect.

Can my business stay open while my liquor license is suspended?

You have to stop selling alcohol for the full suspension period. Texas law does not allow a suspended permit holder to sell, offer, distribute or deliver alcohol. Whether the rest of your business can keep operating depends on your state, local rules and license type, so check with your attorney first.

Can a new owner get a liquor license at a location where one was revoked?

Sometimes the location’s history can affect a new application. In Texas, the state must deny a mixed beverage permit or private club registration permit for one year at a location where a license was canceled because of a shooting, stabbing or other violent act or because of offenses such as drug sales or human trafficking. If you’re buying or leasing a space that used to serve alcohol, look into its history before you sign.

Does staff training protect my license if an employee makes a mistake?

In some states, it can. Texas does not hold an employer responsible for an employee’s violation if the employer requires state-approved seller training, the employee completed it, and the employer did not encourage the violation. Keep your training records up to date and easy to find.

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