Liquor liability insurance, also known as dram shop insurance, is liability coverage for businesses that serve, sell, distribute, manufacture or supply alcoholic beverages. Learn if your business needs liquor liability coverage and how it can affect your insurance costs.

Who is typically liable under a dram shop law?

What Are Dram Shop Laws? Dram shop laws hold a business liable for serving or selling alcohol to minors or intoxicated persons who later cause death, injury, or property damage to another person.

What states have no dram laws?

Currently 43 states and the District of Columbia have some sort of dram shop law in effect, varying in scope. Those states without dram shop laws are Delaware, Kansas, Louisiana, Maryland, Nebraska, Nevada, South Dakota and Virginia.

What kind of insurance do I need for a dram shop?

Dram shop liability insurance is a policy designed for businesses that sell and serve alcoholic beverages. It protects the business from accidents that can be traced back to alcohol-induced behavior within the premises of the business. This policy is also known as liquor liability insurance.

How does dramshop affect liquor liability insurance rates?

Therefore, the same dramshop laws also impact product availability, insurance rates and the overall cost for liquor liability insurance. In other words, insurance companies offer more favorable rates in states where the laws favor the business owners. General liability insurance will not protect bars and restaurants from liquor liability risks.

What kind of insurance do you need for a liquor store?

Liquor liability insurance, also known as dram shop insurance, is liability coverage for businesses that serve, sell, distribute, manufacture or supply alcoholic beverages. Learn if your business needs liquor liability coverage and how it can affect your insurance costs. Liquor liability insurance coverage

What was the purpose of the dramshop law?

Dramshop liability laws were created to protect the public from intoxicated individuals who were over-served. Dramshop liability is a reference to the various state laws that govern legal liability for bars, liquor stores and other business establishments that sell or serve alcoholic beverages.