Liquor Liability Insurance

Is all or part of your business involved in the brewing, vinification, or distilling of beer, wine, or spirits, respectively? If so, you may need Liquor Liability Insurance. The same is true is you are a distributor or are serving and/or selling alcoholic beverages of any kind. A general business policy will not cover you for any claims related to alcohol.

Liquor Liability Insurance is often referred to as Liquor Legal Liability Insurance or Dram Shop Liability. Three primary features on this insurance should include 1) protection if you were to be sued, and a judgment awarded to an individual who is injured or whose property may be damaged and in need to repair; 2) defense costs/legal counsel and fees; and 3) assault and battery exposure as many claims (including both physical and psychological) begin at the hands of a good old fashioned fist fight.

The types of businesses that may have the greatest need of liquor liability insurance include:

  • Nightclubs, bars and lounges
  • Taverns
  • Restaurants
  • Pizza Parlors
  • Stores, including convenience stores
  • Retail Liquor Stores
  • Breweries/Microbreweries, including tasting events and festivals
  • Wineries, including tasting events and festivals
  • Distillation Facilities, including tasting events and festivals
  • Sports Venues
  • Clubs (VFW, BOE, Fraternal, Social)
  • Bed & Breakfast
  • Casinos/Gaming
  • Storage & Wholesale Distributors
  • Independent Contractors & Vendors
  • Resorts
  • Caterers

Additional Liquor Liability Insurance also includes what is referred to as Social Host Liability Insurance and can be your best solution when dealing with daytime and short time-frame events, such as:

  • Bartending Services
  • Seasonal Concessions
  • Special Events (Weddings, Reunions, Parties)
  • Banquet Facilities
  • River & Outfitter Guides
  • Rental Facilities


Like any type of insurance there are various issues that can be a factor as to how much you will pay. Liquor liability coverage is no different. Several main factors that can have a significant impact on your cost include:

  • Estimated Annual Sales
  • Square Footage of your Building/Establishment
  • Square Footage that is Accessible to your Customers
  • Multi-level buildings that have Stairs, Balconies
  • Ratio of food to alcohol sales
  • Having an Identification policy – at present, serving alcohol to minors is illegal in all 50 states
  • A predominantly younger clientele
  • Liquor awareness employee training
  • Policies and procedures addressing serving minors and intoxicated individuals
  • Patron entertainment including live music, dancing, karaoke, dart boards, billiards, bowling, arcade games, simulators, and horseshoe pits, just to name a few
  • Having bouncers
  • Volunteers at a day event

Contact Insure Idaho or call us at 208-947-9777 if you have any questions about liquor liability insurance.