Liquor Liability — Insurance Claims Definition
Liability
Coverage for bodily injury or property damage arising from serving alcohol, especially for businesses in the liquor trade.
Liquor liability (dram shop) covers bars, restaurants, and event hosts for injury caused by intoxicated patrons. CGL often excludes liquor for businesses whose primary purpose is serving alcohol — they need a separate liquor policy.
Social host laws vary by state for private parties.
Examples
A patron over-served at a tavern injures another driver; the tavern faces dram shop liability covered by liquor liability insurance.
Common Mistakes
Thinking a general event policy covers a cash bar without liquor liability. Ignoring state dram shop statutes.
