Liquor Liability Insurance

What is Liquor Liability Insurance?

Liquor Liability Insurance is a specialized type of business insurance designed to protect establishments that sell, serve, or distribute alcohol from lawsuits and financial losses resulting from alcohol-related incidents. 

This insurance helps cover legal costs and financial losses, so you’re not paying out of pocket for something that happened after a few too many drinks.

If a customer causes harm to themselves, another person, or property after consuming alcohol at your establishment, your business could be held legally responsible.

Who Needs Liquor Liability Insurance?

If your business involves alcohol in any way, it is essential for you to get liquor liability coverage. These are the type of  businesses that require this kind of coverage:

• Bars, pubs, and taverns – High-risk environments with frequent alcohol consumption.
• Restaurants – Even if alcohol sales are secondary, liability still applies.
• Nightclubs and lounges – Increased risks due to late hours and high alcohol consumption.
• Breweries and distilleries – Selling alcohol on-site exposes your business to liability risks.
• Event venues and catering businesses – Hosting events with alcohol service increases potential claims.
• Liquor stores and wineries – Even selling alcohol without serving it can create liability issues because of how you distribute alcohol.

Even if alcohol sales aren’t your primary business, host liquor liability insurance may still be necessary—especially for corporate events, fundraisers, and weddings.

What is Covered Under the Liquor Liability Policy?

A liquor liability policy typically covers:

✔ Bodily Injury Claims – If an intoxicated customer injures themselves or someone else.

✔ Property Damage – If an intoxicated person damages someone’s property due to alcohol consumption.

✔ Legal Defense Costs – Covers attorney fees, settlements, and court costs.

✔ Dram Shop Law Compliance – Helps businesses meet state-mandated liquor liability laws.

✔ Assault & Battery Coverage – Some policies include coverage for alcohol-related fights or altercations

How to Get the Liquor Liability Coverage? 

As an Independent Insurance Agency, we have access to multiple insurance providers who  offer comprehensive coverage tailored to your business needs and budget. We’ve been trusted insurance counselors in Erie, PA, since 1969 – not just selling policies, but  building relationships!

Contact Lafaro Insurance Agency today.