What Is Liquor Liability Insurance?

Liquor liability insurance protects businesses that manufacture, sell, serve, or help the consumption of alcohol. If a patron becomes intoxicated at your establishment and injures a third party — in a car accident, fight, or other incident — your business can be held legally liable under Dram Shop statutes.

Coverage Costs for Liquor Liability

Business TypeAnnual Premium Range
Restaurant (bar under 30% revenue)$500–$2,000
Full-service bar or tavern$2,000–$8,000
Nightclub / high-volume venue$8,000–$25,000+