4 Best Liquor Liability Insurance for 2023

Thang Truong
Thang Truong
Updated on:

If you serve liquor to other people in any capacity, a restaurant or bar owner, a party or event host such as a wedding, or a bartender, you are potentially held liable for the damages that your intoxicated customers may cause without being aware of it. In such cases, in order to protect yourself and in some cases your business from these risks, you need to have liquor liability insurance. Let’s have a look at the details of everything you need to know about liquor liability insurance.

The 4 Best Providers of Liquor Liability Insurance

Insureon: Best for Liquor Liability Policy Recommendation

Insureon is an aggregate, much like Coverwallet and Coverhound that you can use to enter information about your business and they will try to get you a quote from multiple sources.  State laws on liquor liability vary quite a bit by how strict they are, so it’s best to do a search for your own state. 

Insureon does offer a lot of very helpful information on their website, so they’re worth looking into for a quote. 

Unsure of what you need? Simply call Insureon and they will be able to walk you through the process and figure out exactly what policies and how much insurance you need. 

We tried to secure a quote from Insureon for a bar based in Colorado, but they were unable to provide us with one. 


A screenshot of a cell phone

Description automatically generated

Food Liability Insurance Program (FLIP) – Best for Immediate Coverage of Liquor Liability

Food liability insurance program can offer you a policy if you have a business and need an annual policy combined with general liability or, if you need a one-to-three day policy to cover an event.

They can provide insurance for almost anyone who works with food and/or alcohol, like food trucks or trailers. You can customize any policy to suit your needs, 

They have instant coverage and you’ll have immediate access to your insurance certificates. Also, they’re licensed in all fifty states. They are worth a look if you need any kind of liquor liability insurance. 

A screenshot of a cell phone

Description automatically generated
A screenshot of a cell phone

Description automatically generated

Coverwallet – Best for Comparison Shopping of Liquor Liability Insurance

Coverwallet is licensed in all fifty states and prides themselves on their convenience and ease of getting customers a policy they can live with. 

Coverwallet takes your information and then, working with a variety of insurance companies, generates quotes from a few so that you can compare them. 

Although they were unable to give us a quote, they usually give at least three. 

A screenshot of a cell phone

Description automatically generated

Markel Insurance – Best for Event or One-Day Liquor Liability Insurance

If you need insurance for a one-time event such as a wedding, Markel insurance is a good bet. They have reasonable prices, and the online quote system is simple. We got a quote in less than a minute for a wedding scheduled six months away. 

Markel’s specialty is specialty insurance. They have customizable policies and offer a variety of discounts. They have everything from horse insurance, event insurance, to snowmobile insurance. 

A screenshot of a cell phone

Description automatically generated

What is Liquor Liability Insurance?

Liquor liability insurance is complex and can be confusing. Liquor liability insurance is defined as coverage for bodily injury or property damage that an intoxicated person causes after being served alcohol by a policy holder. The coverage on a liquor liability policy varies quite a bit from state to state because each state interprets who is legally liable for damages or injuries differently. 

Types of Liquor Liability Insurance

There are actually a few types of liquor liability insurance in the market that you can choose from, depending on the nature of your liquor services:

Liquor liability insurance for restaurants and bars

If you run a bar or a restaurant, you hopefully already have general liability insurance.  General liability insurance protects your business against bodily injury and property damage. However, coverage for alcohol-related incidents is very limited under general liability insurance, and in some states it’s not covered at all.  This means if you run a bar or a restaurant, you need liquor liability insurance. Many states make it mandatory to get liquor liability insurance when you apply for a liquor license.

In many states, as a restaurant or bar owner, you need to have general liability insurance in place when you apply for liquor liability insurance. Insurance companies won’t let you have liquor liability insurance without general liability insurance.

>>MORE: How Much does General Liability Insurance Cost?

Host liquor liability insurance

Host liquor liability insurance is usually included with general liability insurance. This protects someone who is not in the business of selling, serving or manufacturing alcohol from alcohol-related damages. For example, your accounting firm throws a company party and someone has one too many martinis. He then gets in his car and on his way home, hits another car, resulting in damage to the car and injury to the driver. In this case, general liability insurance should cover the accounting firm because they are not in the business of selling, serving, or manufacturing alcohol. 

Host liquor liability insurance coverage only applies if you’re not charging for drinks. If you are charging for drinks, even by way of tickets to a party, you need liquor liability insurance. 

Forty-three out of 50 states have what is called “dram shop liability” or social host liability laws on the books. This means your bar or restaurant could be held accountable for intoxicated patrons who injure people or damage property. 

>>MORE: Best General Liability Insurance for Small Business

One-time liquor liability insurance or temporary event liquor liability insurance

What if you’re hosting a huge wedding and planning to serve alcohol? According to The Knot, getting a general liability insurance policy for your wedding is a good idea. It costs about $185 and includes $1,000,000 worth of coverage for accidents, including alcohol-related accidents. You can also purchase a “temporary event” or one-time liquor liability insurance policy. The cost depends on how many people are attending and how long the event will last. 

Keep in mind, though, if you are holding your wedding at a banquet hall or restaurant, they likely have liquor liability insurance already. Wedding insurance may be helpful if you’re hosting a wedding in your backyard, a park, or in a venue that you own.

If you bartend for events occasionally, be sure to look into and get a bartender insurance policy to protect you from risks involving serving and over-serving people with alcohol.

How Much does Liquor Liability Insurance Cost?

Liquor liability insurance costs small businesses between $33 to $200 per month, or $400 to $2,400 per year. This varies quite a bit depending on several factors:

  • State laws
  • How much alcohol you sell
  • Claims history

Insureon estimates that liquor liability insurance ranges from $225 a year for retail, to $2,060 for bars. Be sure to compare quotes from several companies to find the cheapest one for you. Commercial insurance brokers like CoverWallet or Simply Business make it easier for you to compare several quotes in one place.

>>MORE: How Much Does Liquor Liability Insurance Cost?

How can I Save Money on a Liquor Liability Policy?

There are a few things you can do.

  • Bundle your policies. Buy your liquor liability policy from the same company you purchased general liability insurance. 
  • Provide employees with alcohol service training
  • Make food readily available
  • Pay your entire premium at once

Who Needs Liquor Liability Coverage?

  • Restaurants
  • Bars
  • Caterers
  • Breweries and wineries
  • Grocery stores (if they sell alcohol)
  • Liquor stores

What does Liquor Liability Insurance Cover?

Liquor liability insurance protects you in case you serve someone who is intoxicated and then they go out and cause injury to someone or damages to someone’s property. Liquor liability insurance can cover:

  • Third-party bodily injury
  • Third-party property damage
  • Legal costs
  • Additional claims, such as assault and battery. 

What doesn’t Liquor Liability Insurance Cover?

Liquor liability insurance doesn’t cover everything. It won’t cover:

  • Damage to your own property
  • Advertising injuries
  • Any claims that involve under-age drinking

Final Thoughts

Liquor liability insurance is a necessity for any business that serves alcohol. Make sure you have a policy in place before something happens. Likewise, if you’re hosting an event, you can be held liable in most states, so it’s best to get host liability insurance. Don’t let your excitement preclude your responsibility. After you get host liability insurance, remember to have fun. 

Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at realtor.com, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

More Stories

9 Best General Liability Insurance Companies for 2024

General liability insurance is probably the most popular business insurance that almost all businesses should have. It is required for some professions such as construction. The good news is that many insurance companies offer this product, so it is easy to find one that is the best for your business. In our intensive research, here […]

9 Best Commercial Auto Insurance Companies & Quotes in 2024

If you use your vehicles for work, you need to get a commercial auto insurance policy. Your personal auto insurance policy won’t cover the vehicles when you use for business. Commercial auto insurance is necessary when cars, trucks, or vans are used to conduct business. We cover everything you need to know about commercial auto […]

The 5 Best Business Owners Policy (BOP) Insurance for 2024

A Business Owner’s Policy (or BOP Insurance) is important to any small business to cover potential damages and losses when unexpected events happen. A BOP policy includes the coverages of general liability, commercial property, and business interruption in one master policy. If a small business can only afford one insurance policy, it should be a […]

11 Best Professional Liability Insurance Companies for 2024

If you’re a small business and in the market for professional liability insurance, below are 11 best companies offering this type of insurance for small businesses. In order to get an idea of the prices where online quotes were offered, we looked at a hypothetical accounting business in Wisconsin that had been in business for […]

Milepost Joins Truckstop: A New Dawn for Commercial Truck Insurance

The trucking industry is about to witness a significant shift in how insurance policies are procured, managed, and serviced. Milepost Insurance Agency LLC, a renowned Berkshire Hathaway enterprise, has recently collaborated with Truckstop, thereby pioneering a new era in trucking insurance for independent owner-operators. Revolutionizing the Insurance Experience The primary aim behind this dynamic partnership […]

Navigating Commercial Truck Insurance Premiums in 2023

Commercial truck insurance has become a focal point for many in the transportation sector as we delve deeper into 2023. With premiums seeing significant spikes in recent years, stakeholders are asking: Are we approaching a stabilization or even a decrease in these rates? Insights from industry experts provide clarity on this critical concern. Trends in […]

Regulatory Changes and Rising Commercial Truck Insurance Costs in California

In the wake of the passing of California’s AB5 bill, the trucking industry, including drivers and insurers, face unforeseen challenges. The legislation threatens to severely disrupt contractual trucking gigs, leading to rising insurance costs and potential operational changes. AB5 – A Potential Setback for Owner-Operators AB5, signed into law by Governor Gavin Newsom in 2019, […]

Finding Balance in Commercial Truck Insurance: Costs, Value, Services, and Long-Term Benefits

Navigating the maze of truck insurance offerings is not just a matter of finding the lowest price. It’s about understanding the nuances of what you’re buying, considering long-term benefits, and ensuring a harmonious relationship with your provider. This article offers a detailed examination of the process, unfolding the aspects of costs, value, services, honesty, and […]

New SEC Regulations on Cybersecurity and AI: A Comprehensive Overview

In an era where technology is at the forefront of business operations, the U.S. Securities and Exchange Commission (SEC) is taking decisive steps to ensure transparency and ethical practices. On Wednesday, the SEC was set to introduce new regulations that will impact publicly traded companies in two significant areas: cybersecurity and artificial intelligence (AI). These […]

6 Best Malpractice Insurance for Nurse Practitioners for 2023

Nurse practitioners have a great deal of responsibility when it comes to patient care. Many nurse practitioners assume that because they work under a doctor and their employer provides some level of malpractice insurance, they’re covered. It may be worth it to purchase your own policy, however. Employer malpractice insurance is to protect the employer, […]