Liquor liability insurance helps protect businesses that manufacture, sell and serve alcohol. It’s designed to cover losses resulting from intoxicated guests. These losses include:

• Legal costs
• Lawsuit settlements
• Repairs to fix property damage
• Medical expenses related to injuries

For example, say there is a tipsy customer at your restaurant. While on their way to the bathroom, they accidentally knock another patron to the ground. The guest who fell breaks their wrist and decides to sue your business to cover the medical costs.

Liquor liability insurance can help by paying for the medical bills and any associated legal fees. Generally, liquor liability insurance covers:

Property damage. A tipsy patron excitedly sloshes their red wine while telling a story at your restaurant’s bar area. Unfortunately, the wine lands on another patron’s new $900 designer shoes.

Slips and falls. An intoxicated patron injures themselves or another guest at your business.

Bodily injury. A group comes to celebrate a friend’s birthday with dinner and drinks. They don’t seem intoxicated as they leave, but they get in an accident on the way home that seriously injures the other driver. Your business can be held liable for the damages if the driver was over the limit.