Liquor Liability Insurance
Meet legal requirements and serve confidently with premium liquor liability insurance from Food Liability Insurance Program (FLIP).
Benefits of Liquor Liability Insurance
With FLIP’s alcohol liability coverage, there’s no shortage of perks to toast to.
Get Instant Proof of Insurance
Access your Certificate of Insurance (COI) right after purchase. Plus, add additional insureds like venues and landlords for free at any time.
Easily Customize Your Policy
Whether you need short-term event insurance or an annual policy, FLIP has you covered. Bundle your coverage with general liability or add liquor liability to an existing general liability policy.
Meet Legal and Contractual Requirements
Stay compliant with state liquor laws and satisfy contractual obligations with coverage that meets most minimum limits.
Enjoy Top-Rated Coverage
FLIP’s alcohol liability coverage has an A+ rating from AM Best, and Investopedia named us the #1 liquor liability insurance provider.
What Is Liquor Liability Insurance?
Liquor liability insurance protects businesses that sell, serve, or distribute alcohol by covering bodily injury and property damage claims caused by an intoxicated customer you served.
This policy fills a coverage gap left by general liability insurance, which excludes any alcohol-related claims. Any businesses selling or serving alcohol must have a liquor liability policy in place to cover the cost of these claims.
Your state’s dram shop laws can hold you financially responsible for damages caused by someone you served, even though you didn’t directly cause them. As a result, your business may be on the hook for expenses like:
- Medical bills
- Property repairs/replacements
- Legal fees
Even if your state doesn’t have dram shop laws, you could still be sued in civil court over these damages.
Note: For your liquor liability policy to be valid, you must have an active general liability policy in place with coverage limits equal to or higher than those on your liquor policy.
Who Needs Liquor Liability Insurance?
Anyone in the business of selling, serving, or distributing alcoholic beverages to the public needs a liquor liability policy. This includes (but is not limited to):
- Bars/pubs
- Bartenders
- Breweries/brewpubs
- Caterers who serve alcohol
- Event/1-day bartenders
- Restaurants
- Wedding vendors
- Wineries
In many cases, you may need alcohol liability insurance before your state will issue a liquor license. Landlords and venue managers may also ask for your Certificate of Insurance (COI) before signing any contracts with you.
What Does Liquor Liability Insurance Cover?
Liquor liability insurance coverage is designed to help pay expenses you’re held responsible for when a customer or patron hurts someone or causes property damage after you served them alcohol. Below are a few examples of alcohol-related claims this policy can cover.
Scenario | What Happens | What Liquor Liability Insurance May Cover |
Over-serving a patron who causes an accident | An intoxicated customer leaves your establishment or event and injures someone in a car accident |
|
Assault or argument involving intoxicated guests | A fight breaks out between two guests after alcohol is served, leading to injuries |
* Requires optional assault and battery coverage |
Property damage caused by an intoxicated patron | A customer vandalizes the venue’s property after drinking alcohol at an event |
|
Serving alcohol to a minor | You/your staff accidentally serves alcohol to a minor, who later causes an accident |
|
Liquor Liability vs Host Liquor Insurance
Host liquor liability protects hosts of private events from alcohol-related liability claims. This means anybody throwing a party or event where they’re serving alcohol, including businesses and individuals.
Host liquor coverage is sometimes available as part of a general liability insurance policy. The catch? You cannot make money from serving or selling alcohol.
If you or your business makes money from alcohol sales, you need liquor liability insurance. Any host liquor coverage offered by your general liability insurance policy will not cover alcohol-related claims you face because you’re in the business of selling alcohol.
What Does Liquor Liability Insurance Not Cover?
Alcohol liability insurance only covers alcohol-related third-party bodily injury and property damage claims. It does not cover claims that fall under other coverage types, such as general liability or workers compensation.
Additionally, your coverage could be void if you don’t fulfill your policy’s guidelines. These rules, or warranties, include:
- No liquor liability claims in the past five years
- No more than two fines or citations related to the sale or service of alcoholic beverages in the past 5 years
- Neither you nor anyone with controlling interest has filed for bankruptcy in the last 12 months
- You have a general liability policy with limits equal to or higher than the liquor liability limits
- You have an active liquor license before selling or distributing any alcoholic beverages
- Your business has an enforced written policy and procedure that prohibits the consumption of alcohol while working
- Your business does not allow anybody other than you and authorized employees to serve alcohol
How Much Does Alcohol Liability Insurance Cost?
FLIP’s combined liquor and general liability policy starts at $37.75 a month and provides comprehensive coverage for your business. However, the cost of your liquor liability insurance may be different depending on these factors:
- Which state you live in
- Your gross annual alcohol sales
- The limits you need
- The length of coverage you need
- Which of our liquor liability policies best suits your business
We offer four different liquor liability policies with coverage and pricing to fit a variety of alcohol-serving businesses.
Explore FLIP’s Liquor Liability Insurance Options
General Liability + Liquor Liability Annual Policy
Starts at $37.75/Month or $453/Year
- $2,000,000 in General Liability Coverage
- Up to $2,000,000 in Liquor Liability Coverage
- Free and Unlimited Additional Insureds
- Options for Increased Coverage (Including Assault & Battery Endorsement)
Liquor Liability Annual Policy
Starts at $300/Year
- Up to $2,000,000 in Liquor Liability Coverage
- Options for Increased Coverage (Including Assault & Battery Endorsement)
- Requires a FLIP General Liability Annual Policy
- Free and Unlimited Additional Insureds
General Liability + Liquor Liability Event Policy
Starts at $150/Event
- $2,000,000 in General Liability Coverage
- Up to $2,000,000 in Liquor Liability Coverage
- Free and Unlimited Additional Insureds
- Options for Increased Coverage
Liquor Liability Event Policy
Starts at $100/Event
- Up to $2,000,000 in Liquor Liability Coverage
- Free and Unlimited Additional Insureds
- Options for Increased Coverage
FAQs About Liquor Liability Insurance Coverage
Is Liquor Liability Insurance Required by Law?
Some states do require you to carry liquor liability insurance to serve alcohol legally. While insurance isn’t always mandated, most states have dram shop laws that hold you liable for serving a minor or overserving. If you don’t have liquor liability insurance, you could be forced to pay legal fees, medical bills, and fines out of pocket.
Do I Need General Liability to Buy Liquor Liability?
Yes, you need a general liability policy to qualify for liquor liability insurance. Your GL limits must equal or exceed the liquor liability limits to get coverage. Our FLIP Pro + Liquor bundle combines general and liquor liability into one policy starting at just $37.75/month.
Can I Buy a 1-Day Liquor Liability Policy?
Yes! FLIP offers a short-term event liquor liability policy for weddings, parties, and other gigs. This is ideal for food pros who only serve alcohol occasionally, like caterers.
Our event policy includes coverage for up to 3 consecutive days. Even if your event lasts only one day, this gives you a buffer period for setup and teardown.
How Fast Can I Get Proof of Insurance?
You can access your Certificate of Insurance (COI) immediately after purchasing your policy. Log in to your online dashboard to view and download your COI or make changes to your coverage. When you add an additional insured to your policy, we’ll automatically email them your COI.
Learn More About Liquor Liability Insurance
Get additional information about this critical liability coverage.
What FLIP Customers Have to Say About Our Liquor Liability Insurance
Here’s what other people have to say about their experience from 400+ available reviews.
Written by: Chris Van Leeuwen
Chris Van Leeuwen is the VP of Agency Development for Food Liability Insurance Program (FLIP). He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.
Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to food and beverage professionals across the country who are looking to navigate business liability insurance
Reviewed by: Kyle Jude
Kyle Jude is the Program Manager for Food Liability Insurance Program (FLIP). As a dedicated program manager with 10+ years of experience in the insurance industry, Kyle offers insight into different coverages for food and beverage business professionals who are looking to navigate business liability insurance.