Host liquor liability vs. Liquor Liability insurance: What's the difference?

Serving alcohol usually brings its own set of risks. Learn the difference between the types of liquor insurance to make sure you get the right coverage.

Aditya Raghunath - Writer for NEXT Insurance
By Aditya Raghunath
Michelle Meyer - Editor for NEXT Insurance
Edited by Michelle Meyer
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Updated May 31, 2023.

Liquor insurance can help protect a business or event host from liability if a patron becomes intoxicated and causes harm to themselves or others or damages property.

Without liquor insurance, a business can be held responsible for any incidents that occur and may face large financial settlements or lawsuits.

But what exactly are host liquor liability and liquor liability insurance?

What is host liquor liability insurance?

Host liquor liability insurance can cover a business (or individual) that sells or serves alcohol at a private event. This insurance is typically short-term and is aimed at businesses that don't make, sell or serve alcohol.

Host liquor liability insurance help can protect you from:

  • Damages or injuries resulting from serving an intoxicated person.
  • Claims by third parties who may have been injured or suffered property damage because of the actions of a patron who was served alcohol by you.
  • Legal defense costs and any settlement or judgment awarded to the plaintiff.

So, if you're hosting a wedding reception, a fundraiser or a company event and you're serving alcohol, host liquor liability insurance can be the safety net you need.

What is Liquor Liability insurance?

Liquor liability insurance can provide coverage for businesses that make, serve or sell alcohol to customers and can protect them from losses if they're sued for injuries caused by someone who was served alcohol on business premises.

But if you don't have liquor liability insurance and get sued, the expenses associated with the lawsuit can come out of your pocket.

Benefits of Liquor Liability insurance

Liquor liability insurance can help protect your business by potentially covering your:

  • Legal costs: These are expenses associated with pursuing or defending a legal case, such as hiring a lawyer, filing fees and court costs.
  • Settlements or judgments: These can include payment of damages, compensation for medical expenses or reimbursement of legal fees.
  • Repair costs to fix property damage: Costs related to property damage can be covered by insurance.
  • Medical bills to treat an injury: Medical costs associated with treating injuries can be covered.

Protect yourself and your business with NEXT

NEXT is committed to small businesses and specializes in insurance for restaurants and other professions.

Just answer a few questions online to get your instant quote. Restaurant owners can add liquor liability insurance to their general liability coverage in less than 10 minutes.

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