
Alcohol consumption means liability risk
Liquor liability insurance is also known as “dram shop” insurance because it was developed to counter dram shop laws. These laws are named after establishments in 18th century England that served gin by the spoonful or "dram."
Dram shop laws in more than 40 states hold businesses liable for the actions of intoxicated customers who were served or sold alcohol at their establishment. This means a third-party victim can sue the intoxicated person and the business that served them.
Consider if you were a bar owner and several drunk patrons broke into a fight following a particularly tense sporting event. One man suffers a broken nose and fractured collarbone from the incident and sues the perpetrator and your business for damages. Regardless of whether the court determines you overserved a clearly intoxicated person, expensive legal fees could harm your business.
Liquor liability insurance covers any legal costs, settlements, and medical fees you may be liable to pay.
Dram shop laws in more than 40 states hold businesses liable for the actions of intoxicated customers who were served or sold alcohol at their establishment. This means a third-party victim can sue the intoxicated person and the business that served them.
Consider if you were a bar owner and several drunk patrons broke into a fight following a particularly tense sporting event. One man suffers a broken nose and fractured collarbone from the incident and sues the perpetrator and your business for damages. Regardless of whether the court determines you overserved a clearly intoxicated person, expensive legal fees could harm your business.
Liquor liability insurance covers any legal costs, settlements, and medical fees you may be liable to pay.