Published On: February 4, 2024

Running a business that serves alcoholic beverages comes with certain risks and responsibilities. If you serve alcohol to an intoxicated person, you can be held liable for any bodily injury or property damage that they cause. Liquor liability insurance can help protect you in these situations. Tabak Insurance offers reliable, affordable insurance policies that can protect you from legal and financial repercussions arising from alcohol-related accidents. 

What Is Liquor Liability Insurance?

Liquor liability insurance is a specialized coverage designed to protect businesses that serve alcohol. It protects your business if an intoxicated patron damages property or causes bodily harm after drinking at your establishment. It covers specific alcohol-related incidents that general liability insurance may not cover. In many states, federal law requires that you have this insurance. Dram laws can hold your business liable for alcohol-related damages, which can be expensive. Liquor liability coverage protects both your establishment and your customers. It can pay for medical bills, legal fees, or settlement payouts. 

What Situations Are Covered by Liquor Liability Insurance? 

Tabak Insurance can help protect you from a variety of different alcohol-related claims. Here are some situations that are covered by liquor liability coverage:

Drunk Driving

If you serve alcohol to an individual who ends up driving drunk, you could be held responsible for the resulting damages. Damages may include bodily injury or damage to property caused by an accident. Liquor liability coverage can address legal expenses, settlements, and other accident-associated costs for the parties involved in the accident. Insurance overage can protect your business from financial and legal consequences stemming from the actions of intoxicated customers.


Liquor liability coverage protects your business if an intoxicated customer becomes aggressive and starts a physical fight on your property. Without coverage, you could be left to pay the resulting legal fees and medical bills. 

Slips and Falls

Liquor liability coverage covers slips and falls that occur on your property. If an intoxicated person falls and injures themselves, insurance can provide financial protection from potential legal expenses, medical bills, and settlements. Insurance allows you to provide responsible alcohol service to your customers and protect you from potential liabilities.


Your business could face legal consequences if an intoxicated customer becomes aggressive and assaults someone. This can include violent altercations and sexual harassment. Liquor liability coverage can protect against claims that arise from these incidents and offer coverage for legal fees and settlements.

Property Damage

Liquor liability coverage covers property damage to others’ property. This includes property that is damaged during physical altercations or drunk driving incidents. It does not cover damage to your own property. Our insurance agents can offer packages that protect your property from similar situations, such as commercial property insurance.

How Can I Reduce Risks?

Reducing risks in your business can help you reduce the likelihood of being held liable for one of these alcohol-induced incidents. This can allow you to save money and provide responsible service to your customers. Some steps you can take include training your staff to recognize the signs of intoxication. Establish policies and guidelines about refusing service to visibly intoxicated individuals. This can reduce the risk of drunk driving, fighting, and falls due to over-serving customers. You can also promote non-alcoholic beverage choices to customers who have been drinking and encourage drunk customers to take a taxi or use a rideshare service to get home. Implementing strict ID verification procedures, keeping your business well-lit, and utilizing security systems can reduce alcohol-related incidents and mitigate liquor liability risks.

What Factors Influence the Cost of Liquor Liability Coverage?

Your insurance needs can vary drastically depending on the type of restaurant or establishment you own. Various factors can influence the cost of liquor liability coverage for your business. These factors include:

  • The location of your business
  • The size of your business
  • The amount of coverage you want
  • Your business’s history
  • The safety measures you have in place

Your liquor liability coverage cost can change based on your chosen deductible and policy limit. We also consider every aspect of your business so we can provide you with the best coverage possible. Fill out our online questionnaire to receive a quote with an approximate cost for your insurance.

Purchase Liquor Liability Insurance From Tabak Insurance

Liquor liability insurance can provide financial and legal protection from alcohol-related incidents. It can protect you in various situations, including drunk driving, fights, slips and falls, and more. Combining insurance with other proactive risk management strategies can help you create a safer environment for your customers and protect you from legal consequences. If you want affordably-priced insurance for your restaurant, bar, or nightclub, contact Tabak Insurance. We can tailor your coverage to the specific needs of your business and help you save money on your insurance premiums. Get a quote today and get insured in 24 hours or less.

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