Everyone knows that your place is the one to go to on a Friday night to have a good time! Unfortunately, sometimes people can have a little too much fun and that’s when trouble can happen. Liquor Liability insurance is designed to defend your bar or restaurant from a third party claiming that they were injured because you overserved a customer. The coverage pays for both defense costs and damages. 

The liquor liability laws (which are also known as Dram Shop laws because alcohol was once sold in units called Drams.) can vary greatly from state to state. Nevada and California both have very strong Dram Shop laws that are designed to protect Bars and Restaurants from lawsuits related to liquor liability. One of the major exceptions in both states where you can see significant liability is if you knowingly overserve a minor and they then are involved in an accident.  

In states with good Dram Shop laws, Liquor Liability coverage is typically not expensive because successful claims are uncommon. It is still something important to consider including in your overall insurance program. Just because they won’t win, it doesn’t necessarily mean that someone won’t attempt to file a claim against you. A Liquor Liability policy will pay for the response to their claim and help get the situation handled properly. A good policy will also provide coverage in the event that one of your employees does break the rules and overserve a minor.  

At Statement Insurance Agency, we can help you evaluate your risk with regard to Liquor Liability and make the correct decision on whether or not purchasing coverage is right for you.