Liquor Liability for Your Liquor License

Guild Insurance

Liquor Liability Insurance

Many states require businesses that serve or sell alcohol to obtain liquor liability insurance as a condition to maintain a liquor license. If you serve or sell alcohol, you may be responsible for the actions of your patrons when they become intoxicated. Guild Insurance can help.

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What is Liquor Liability Insurance?

Liquor liability insurance provides coverage for the acts of intoxicated patrons who injure someone else or damage the property of another person.

Many states have statutory requirements that mandate liquor liability coverage to be in place if you sell alcohol.


Liquor liability insurance is commonly referred to as “dram shop insurance”.
A dram was the traditional method for a measurement of whiskey (or whisky if you are a Scotch fan).
The term dram shop can be traced back to the 1700s in England.
Many state liquor liability statutes date back to the repeal of prohibition in 1933.

Is your business covered for liquor liability?

Many liquor liability policies exclude this coverage. Do you have Common Law Coverage? Common-Law Liability applies when the consumption of alcohol and intoxication of a patron occurs in your state of coverage, but that alleged intoxicated patron injures someone else or damages another’s property in another state. In this instance, your current insurance policy may not respond with defense if Common Law Liability Coverage is excluded. At Guild Insurance, all of our carriers include Common Law Liability Coverage.

Why Get Liquor Liability Insurance?

A patron overindulges and gets into an accident on the way home late at night, injuring his date. An argument over a bar tab turns into a physical altercation. An innocent pedestrian is struck by the vehicle of your customer who has indulged in one too many glasses of a fine Napa cabernet. You may be financially responsible for the injuries caused by your patrons. Your liquor liability policy with Guild Insurance will respond with vigor to protect your business.

Coverage Highlights

Assault & Battery Coverage included
Common Law Liability included
No annual aggregate limit of insurance
Limits up to $5mm
No deductible
Defense costs outside policy limits

Claim Vault

Two patrons have a minor disagreement in your establishment and leave separately. You later find out that they both met up at another tavern across the state line. The disagreement escalated, and a shotgun was fired severely injuring one of the former patrons. This occurred in another state, how could you be liable? Fortunately, your liquor liability insurance policy with Guild Insurance includes Common Law Liability where the insurance company responds in defense of your business.

True Story—We’ve been around since 1946. We’ve seen a lot.

How Do You Get Liquor Liability Insurance?

Complete our easy online quote form and sit back and relax; Guild Insurance handles the rest. Our professional agents will submit your business to our top-rated carriers and contact you once the quote is received.

Guild Insurance has you covered!

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Our Other Coverages

You’ve invested a lifetime of passion in your business; You need an insurance policy that will protect it. Guild Insurance offers insurance policies that meet each unique challenge the hospitality industry presents.

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