Liquor Liability Insurance

Coverage that can help protect food businesses from the risks of serving alcohol

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What is Liquor Liability insurance?

Liquor liability insurance could help cover the risks of serving alcohol for restaurants, caterers and other food businesses. It may help cover legal fees, property damage and medical costs.

What can Liquor Liability insurance cover?

Medical bills if your intoxicated guest causes bodily injury
Damaged property costs
Legal fees

How much does Liquor Liability insurance cost?

Starting at $25/month^†

Buy online in about 10 minutes, and cancel anytime.

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Who needs Liquor Liability coverage most?

Businesses that serve alcoholic beverages
Stores that sell alcohol
Crafters who make alcoholic drinks for sale

Liquor Liability insurance could help protect you from

Legal fees

A customer you served drinks to at your restaurant injures someone in a car accident. Your business could be held liable if the driver was over the legal limit.^**

Medical bills for injuries

An intoxicated customer injures another patron in your cafe. The customer who got hurt asks your business to cover the medical costs.

The costs of property damage

A drunk patron spills red wine on another guest and ruins their designer clothing. Your business is asked to pay for a replacement.

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What does General Liability with Liquor Liability insurance cost?

ERGO NEXT includes liquor liability insurance as an add-on to our general liability insurance policy for restaurants, cafes and other food service businesses. It can cost as little as $25/month† for some low-risk businesses.

Several factors influence your liquor liability insurance quote and the cost of liquor liability insurance, including:

The type and size of your food service business.
The state and city where you do business.
How much of your revenue comes from alcohol sales.
The types of alcohol you serve.
Your hours of operation.
Your alcohol-service practices and employee training.
Your history of insurance claims.
The policy coverage limits that you choose.

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How to buy General Liability insurance with Liquor Liability coverage online

Start a free online quote

In about 10 minutes you’ll see the exact price you’ll pay for liquor liability insurance online.

Customize your coverage

Adjust your policy limits and deductibles to pick the right coverage at the right price.

Buy 100% online

Your coverage is effective after payment. And your certificate of insurance can be shared at no extra cost.

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Who needs Liquor Liability coverage?

Restaurants and cafes

If you’re accused of over-serving alcohol to customers at your restaurant, your state dram shop laws could hold you responsible if an intoxicated patron causes harm or damage after they’ve been served by your business.

Caterers

If your catering business serves alcohol, you may need liquor liability coverage to meet licensing requirements or the requirements of venues or clients. Liquor liability coverage may also help protect your business if a guest you serve causes injury or property damage.

Food service businesses that serve alcohol

Other eligible food service businesses that sell or serve beer, wine or liquor may also need liquor liability insurance; for example if you run a food truck, coffee shop or food cart. This type of coverage could help protect your business from the financial consequences of alcohol-related claims and may be required by a specific contract.

Grocery stores

If you plan to sell alcoholic beverages in a grocery store, insurance for liquor, beer or wine may be a requirement to get a business loan or rent a commercial property.

Crafters and resellers

If you make or sell alcohol on-premises, liquor liability insurance coverage could help protect you.

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Commercial Property insurance

Commercial property could help cover kitchen equipment, furniture, POS systems, food and inventory if it’s damaged by an event like a fire, theft, vandalism, extreme weather or a power outage. Property insurance could also help cover lost income if you temporarily close after a covered event.

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Workers’ Compensation insurance

Workers’ comp insurance could help protect your business if an employee gets hurt or becomes ill on the job. For example, if your cook suffers a burn or trips while working, workers’ comp could cover the cost of medical bills and lost wages. Most states require workers’ comp if you have employees.

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Cyber Liability insurance

If you store customer data like contact information, financials or proprietary code, cyber liability insurance, available as an add-on to general liability insurance or professional liability coverage, could help cover the costs of a quick response to wire fraud, data leaks and ransomware attacks.

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Commercial Auto insurance

Commercial auto insurance can be required for businesses who own or drive vehicles for work. If you deliver food, transport supplies or travel to catering jobs, commercial auto could help pay for damages if you or an employee are involved in a covered accident while driving for business.

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Liquor Liability insurance FAQ

Get answers to your most frequently asked questions about liquor liability insurance.

Is Liquor Liability insurance coverage required?

Liquor liability may be required for some food and beverage business operations, including:

Liquor licensing. Liquor liability insurance can be required for your business to get a liquor license in some states.
Renting a commercial property. Some landlords may require liquor liability coverage if you rent your restaurant or food business space.
Dram shop law compliance. Almost every state in the U.S. has dram shop laws. These could hold a business liable for selling or serving alcohol to individuals who cause injuries or death because they’re intoxicated.
Getting a business loan. Banks and lenders may ask you to get liquor liability coverage to help mitigate their financial risk.

Laws vary by state, so it’s best to check what the requirements are in your area.

What is Host Liquor Liability insurance, and is it the same as a Liquor Liability insurance policy?

Host liquor liability insurance is a short-term policy designed for a person or company hosting temporary, private special events like a wedding or a holiday party.

Host liquor liability does not cover businesses that manufacture, serve or sell alcohol as part of their operations. It’s more for businesses that allow alcohol consumption on their premises temporarily.

ERGO NEXT does not sell host liquor liability coverage.

Though the name is similar, liquor liability coverage is a different type of insurance created to help protect businesses that make, serve and sell alcohol as part of their daily business operations, such as a restaurant or cafe.

Does ERGO NEXT offer Liquor Liability insurance for events?

ERGO NEXT does not sell one-day liquor liability insurance for events like weddings or private parties. Our liquor liability coverage is available as an add-on to general liability insurance for eligible food service businesses that sell or serve alcohol.

If you need liquor liability insurance for an event, you may see coverage described as event liquor liability insurance, wedding liquor liability insurance or event insurance with liquor liability. Depending on the circumstances, host liquor liability coverage may also apply.

Does ERGO NEXT offer insurance for bars?

ERGO NEXT does not offer bar insurance or liquor liability insurance for bars. Bars may need specialized business insurance that includes liquor liability coverage for the particular risks associated with serving alcohol as the center of the business.

ERGO NEXT liquor liability coverage is available for eligible food service businesses, including restaurants and cafes that serve alcohol.

Does ERGO NEXT offer bartender insurance?

ERGO NEXT does not offer standalone bartender insurance or one-day bartending insurance for events. Bartenders working independently may need their own coverage — sometimes called bartender liability insurance or bartending insurance — depending on their work and the requirements of the vendor or venue they serve.

If you operate an eligible restaurant, catering business or other food service business that employs bartenders, ERGO NEXT liquor liability coverage could help protect your business from certain alcohol-related claims.

What is Dram Shop insurance?

Dram shop insurance can be another name for liquor liability insurance. The name comes from dram shop laws, which are laws that may hold businesses liable if they serve alcohol to someone who later causes injury or property damage.

Dram shop laws vary by state, so check local laws and insurance requirements where you operate your food service business.

How do I get Liquor Liability insurance coverage?

You can get liquor liability insurance coverage from ERGO NEXT as an add-on to general liability insurance for eligible food service businesses. You cannot buy liquor liability insurance on its own.

Start a free, no-obligation quote to see options and an exact price customized for your business. Get general liability insurance with liquor liability coverage 100% online in about 10 minutes. And get your certificate of insurance immediately after payment at no additional cost.

If you have questions, our licensed, U.S.-based insurance professionals are available to help.

Can you buy Liquor Liability insurance as a standalone policy?

ERGO NEXT does not offer liquor liability insurance as a standalone policy. Liquor liability coverage is available as an add-on to general liability insurance for eligible restaurants, cafes and other food service businesses that sell or serve alcohol.

Adding liquor liability coverage to your general liability coverage could help protect your food service business from a broader range of risks, including customer injuries and property damage as well as certain alcohol-related claims.

When will I get my policy and proof of insurance?

It takes about 10 minutes to get a quote, buy coverage and get access to policy documents and your certificate of insurance (COI).

You can access your documents and COI 24/7 online or in the ERGO NEXT app for iPhone or Android.

How do I make a Liquor Liability insurance claim?

You can file a claim anytime online or in the ERGO NEXT app.

You’ll be asked to share the details of what happened and to provide relevant photos and documentation. We strive to make claims decisions as quickly as possible so that you can get back to work.

Learn how to file a claim.