Liquor Liability Insurance

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Since 2013, Preferred Insurance has been helping customers get the coverage they need for their businesses. We invite you to learn more about us, and make Preferred your agency of choice.

What is Liquor Liability Insurance?

Liquor liability insurance, sometimes known as Dram Shop Insurance, covers owners should there be any property or personal damages due to the actions of an intoxicated individual after they were served by your business. As a business serving alcohol, you’re on the hook for overserving but that can sometimes be difficult to evaluate. What is someone bought drinks for someone else? What if an intoxicated customer got into a fight with another person? Don’t let a small mistake put you in the hot seat. Get your liquor liability insurance policy today to protect your business from mishaps.

Who is Eligible for Liquor Liability Insurance?

Liquor liability insurance is a good idea for anyone who sells or distributes alcohol.

  • Liquor store owners: If you are the owner of a liquor store, you absolutely need coverage in case of any damage, personal liability, or problems with customers.
  • Businesses selling food and beverages: You might be a restaurant, food truck operator, caterer, special event venue, bar, or any other establishment that serves alcohol. If you serve alcohol, you need coverage.
  • Distributors: If you distribute alcohol to liquor stores, groceries, restaurants, or any other establishment, you need liquor liability insurance.
  • Retailers: Retailers engaging in the sale of liquor of any kind need to have liquor liability insurance. Even if you sell alcohol online, you need coverage.

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Why Do I Need Liquor Liability Insurance

Liquor liability insurance is important for anyone who sells alcohol. Statista reports that the alcohol market is worth $248 billion. High sales are great for business, but alcohol can create risk with customers who are under the influence and the last thing you need is additional costs related to your customer’s poor judgement.

  • One-third of all car crashes in the US involve alcohol, costing approximately $44 billion annually.
  • Approximately 140,000 people die from alcohol each year.
  • There are approximately 1.4 million incidents of alcohol-related violence against others each year.


These are risks that anyone selling alcohol can’t ignore. Although you likely have a general liability policy, liquor liability can help to cover you where your general coverage cannot. Typically, general liability will cover things such as loss, theft, employee error, weather-related damage, and more. But it will not cover any damage or lawsuits due to intoxicated individuals. Liquor liability insurance can protect you in the event of the following.

  • Assault or personal damage due to physical aggression from an intoxicated customer.
  • Litigation related to drunk driving.
  • Property damage caused by a customer under the influence of alcohol.

Looking for help? Our agents can help you find what you’re looking for.

How Much Does Liquor Liability Insurance Cost?

The cost of a liquor liability insurance policy can vary depending on several factors.

  • Location: Where you’re located influences the price of insurance policies. Areas with higher risk or cost of living might be affected by higher policy rates.

  • General coverage: Depending on your general liability business coverage, you may need to adjust your policy to add coverage that isn’t included.

  • Type of venue: Your risk factors are different depending on whether you are a liquor store owner, restaurant, other food operator, or distributor.

  • Risk: Businesses that are determined to have high risk factors, such as high crime may be subject to higher rates.

  • Amount of alcohol sold: The percentage of alcohol sales in relation to your overall sales affects the price of your policy.

See what Preferred customers are saying...

“I am so happy with PCIA as my insurance agent. I like the fact that even when things got tough for me you always took the time to answer my multiple questions and guide me to avoid pitfalls which in turn has saved me money.”

E. Gutierrez DFW Pro Office Cleaning

“Upon searching for that “competitive edge insurance agency”… I found the staff and management of PCIA to be very responsive and professional, with that extra touch of expedited service and impeccable documentation. They have handled our Commercial Auto and Cargo needs, while still providing the coverage at a fair price. If you’re in search of that “just right fit” for your fleet insurance, then look no further.”


“I just wanted to thank you for your incredible service over the past two years or so with regards to our business’ insurance coverage. You have been far and away the best and most diligent of any carrier we have had over our 36 years in business. Thank you all for your incredible time and attention to the needs of my business. WE look forward to another great year with you.”

L. Lothrop Lothrop’s Landscape, Inc.

Benefits of Liquor Liability Insurance

Fast Coverage: We provide you with options so you can get your business covered quickly.

Greater Trust: Enhance your customer’s trust with full coverage to cover any issue.

Multiple Options: Preferred provides multiple policy options so you can choose the one right for you.

Always Available: Preferred is available to help assist with claims 24/7.

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