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Liquor Liability Insurance

Businesses that sell or serve alcohol must account for many constant risks and exposures. When a company’s operations involve alcohol, it may be held accountable for many incidents that could arise from daily operations or interactions. For example, these businesses could be held liable for losses and damages caused by intoxicated customers. In these situations, a liquor liability insurance policy can provide crucial aid.

What Is Liquor Liability Insurance?

Liquor liability insurance may be an integral part of a coverage portfolio for many businesses. Although all businesses face unique circumstances, in general, any business that takes part in selling or distributing alcohol could face additional risks and exposures. A liquor liability insurance policy casts a wide safety net across many losses and damages that may arise from an organization’s involvement in providing alcoholic beverages.

What Does Liquor Liability Insurance Cover?

An adequate liquor liability insurance policy usually focuses on providing financial protection for a business in response to the following:

  • Third-party bodily injury—If a customer or guest becomes intoxicated and injures another person, liquor liability coverage may help pay for the victim’s medical expenses.
  • Third-party property damage—This coverage may provide financial assistance to repair or replace property damage caused by an intoxicated patron, such as via vandalism or a drunk driving accident.
  • Legal costs—If a business is sued over an incident involving an intoxicated customer, this coverage may help pay for representation, court costs, settlements and judgments.

It may also be advisable for companies to consider enhancing their insurance portfolios with additional policies or endorsements. For example, a business that employs bouncers should explore adding assault and battery coverage to protect itself financially if a customer is injured in an altercation.

How Much Does Liquor Liability Insurance Cost?

Although all businesses involved in the sale or distribution of alcohol may face similar risks and exposures, specific needs and coverage costs may vary significantly. Before being able to provide a company with an accurate quote for adequate coverage, insurance companies may consider the following factors:

  • Location—Businesses in certain states or in areas with more frequent claims may have to pay more for coverage.
  • Industry—Different types of businesses (e.g., liquor stores, bars, caterers) may have varying risk levels.
  • Sales numbers—Rates may be affected by the number of alcohol sales a company makes or the percentage of its total sales made up of alcohol.

Aside from those factors, liquor liability insurance premiums may also vary depending on the specific details of policies and companies’ prior claims history.

How to Get Liquor Liability Insurance

At Clearwater Partners, our agents have the expertise and experience to help restaurants, bars, liquor stores and other businesses understand their alcohol-related risks. We will thoroughly analyze coverage needs and construct optimal insurance solutions. Visit our website or call (813)497-7579 to get started.


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