Dram Shop Insurance
Get your business A+ rated protection from costly liquor liability claims in 10 minutes or less!
Choose the Right Dram Shop Insurance Plan for Your Business
Platinum
General Liability + Liquor Liability Annual Policy
For caterers, food trucks, concessionaires, and private chefs. Best for businesses that serve alcohol and food. General liability policy included.
Included:
365 Days of Coverage
Free & Unlimited Additional Insureds
General Liability Limits:
$1,000,000 Occurrence / $2,000,000 Aggregate
Liquor Liability Options Up To: $1,000,000 Occurrence / $2,000,000 Aggregate
Optional:
Assault and Battery: $25,000 limit
Trailer Endorsement
Professional Liability
Inland Marine (Tools & Equipment)
Starts at $37.75/Month
Gold
Liquor Liability Annual Policy
For caterers, food trucks, concessionaires, private chefs, and bartenders. Best for businesses that need long-term alcohol coverage. General liability policy required.
Included:
365 Days of Coverage
Free & Unlimited Additional Insureds
Liquor Liability Options Up To: $1,000,000 Occurrence / $2,000,000 Aggregate
Optional:
Assault and Battery: $25,000 limit
Starts at $25/Month
Silver
General Liability + Liquor Liability Event Policy
For caterers, food trucks, concessionaires, private chefs, and bartenders. Best for businesses that need short-term alcohol coverage. General Liability policy included.
Included:
Up to 3 Days of Consecutive Coverage
Free & Unlimited Additional Insureds
Liquor Liability Options Up To: $1,000,000 Occurrence / $2,000,000 Aggregate
Starts at $150/Event
Bronze
Liquor Liability Event Policy
For caterers, food trucks, concessionaires, private chefs, and bartenders. Best for businesses that need short-term alcohol coverage. General Liability policy required.
Included:
Up to 3 Days of Consecutive Coverage
Free & Unlimited Additional Insureds
Liquor Liability Options Up To: $1,000,000 Occurrence / $2,000,000 Aggregate
Starts at $100/Event
Benefits of Dram Shop Insurance
Affordable, A+ Rated Coverage
Get premium coverage for a competitive price and protect your business from common alcohol-related claims without breaking the bank.
Quick Online Coverage
Most people can get a free quote in minutes — about as long as it takes to make a great cocktail! Plus, you only have to speak to an agent if you want to.
Personalized Policies
Increase your limits and select the coverages you need to create the perfect customized policy for your business.
What Is Dram Shop Law?
Dram shop law holds business owners liable for accidents caused by people they served alcohol to.
42 states and the District of Columbia have dram shop laws, which differ from each other. While most focus on visually intoxicated persons, minors, and the last business to serve them alcohol, it’s important to know your state’s dram shop law.
Who Does Dram Shop Liability Insurance Protect?
Dram shop insurance coverage can protect a variety of businesses from the cost of alcohol-related claims, including:
Any business that sells, serves, or provides alcohol can benefit from dram shop insurance.
How Much Does Dram Shop Insurance Cost?
When it comes to the cost of dram shop insurance, you have a few options:
- Starting at $37.75 per month, you can protect your business with General Liability insurance + Liquor Liability Annual insurance
- Starting at $150 per event, you can protect your business with a General Liability + Liquor Liability Event policy
The prices listed above are the starting prices for the different policies and can vary depending on the following factors:
- The state you operate your business in
- The gross annual sales of your business
- The limits you select
- The length of coverage
If you have an existing general liability insurance policy
Learn More About Dram Shop Laws
Get details on dram shop insurance and explore how dram shop laws affect your business.
Dram Shop Insurance Coverage Details
General Liability
Aggregate Limit: $2,000,000
Protect your business from third-party bodily injury and property damage claims that arise as a result of your business operation. Examples of general liability claims include “trip and fall” accidents where a customer hurts themselves or breaks an individual’s personal property.
Liquor Liability
Aggregate Limit: $2,000,000
Protect your business from third-party claims arising from accidents involving customers you served alcohol to, according to local dram shop law. Common liquor liability claims include bodily injury and property damage claims that occurred off-premises after you served them alcohol.
Inland Marine (Tools & Equipment)
Aggregate Limit: $10,000
Protect your business from the out-of-pocket expenses that could arise if your equipment gets damaged or stolen. It covers damages and loss that occur at home, during transport, on the job, or anywhere in between.
Assault & Battery
Aggregate Limit: $25,000
Protect your business from third-party bodily injury, property damage, and personal advertising injury claims that arise from assault and battery at your business location.
Cyber Liability
Aggregate Limit: $100,000
Protect your business from first- and third-party claims that arise from cyber security breaches. First-party claims can include the cost of repairing or replacing compromised equipment or recovering lost data. Third-party claims commonly include loss of customer data.
Trailer Endorsement
Aggregate Limit: $2,000,000
Extends your general liability coverage to your trailer while it is parked on a premise, separated from your vehicle. You can add it in the application or from your user dashboard at any time.
Professional Liability
Aggregate Limit: $200,000
For the rendering or failure to render services in connection with the operation of your business FLIP description as a facilitator, instructor, or teacher of classes or workshops.
Free & Unlimited Additional Insureds
Add other parties such as landlords and property owners to your policy when they request it. Include them as an additional insured on your application or add them via your user dashboard any time, free of charge.
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Dram Shop Coverage FAQs
What Is Dram Shop Insurance?
Dram shop coverage is a liability insurance plan designed to protect businesses that serve alcohol from the financial burden of liquor-related claims. These claims can cost you thousands or even hundreds of thousands of dollars, but this insurance can reduce or eliminate the amount you pay out of pocket.
Dram shop insurance from Food Liability Insurance Program (FLIP) includes the following coverages in a base policy:
- Liquor liability
- General liability
- Product liability
What Kinds of Businesses Need Dram Shop Insurance?
In the United States, if your business sells or serves alcohol, you are legally required to have liquor liability insurance.
What Are the Risks of Running an Alcohol-Serving Business?
Some of the biggest risks alcohol-serving businesses face include:
- An intoxicated customer driving home from an event and causing a car accident, injuring themselves and another party
- One of the guests you served at an event damaging the venue after having too much to drink
- A member of your staff accidentally serving alcohol to a minor at an event
Dram shop laws can hold you financially responsible for all of the above, legally requiring you to pay for expenses such as medical bills and repairs to property. Any legal fees you accrue trying to defend yourself in court or settle a lawsuit are also your responsibility to pay.
Depending on your business activities, you may face other risks, such as:
- Cybersecurity breaches (if you store business data electronically)
- Giving poor business advice (if you offer advising or coaching services to other businesses)
- Assault and battery claims (if one of your intoxicated patrons threatens or starts a fight with another person)
Why Do I Need Dram Shop Insurance?
Unless you live in a state without dram shop laws (Delaware, Kansas, Louisiana, Maryland, Nebraska, Nevada, South Dakota, or Virginia), you cannot legally sell or serve alcohol without insurance.
Even if you live in one of the above states, you still face liability risks daily that could lead to expensive accidents. While there are steps you can take to prevent these risks, the only way to protect yourself from the financial burden of a claim is by insuring your business.
What Kinds Of Claims Does Dram Shop Insurance Cover?
- Third-party bodily injury
- Third-party property damage
- Equipment damage or theft (available with tools and equipment add-on)
- Third-party bodily injury and property damage claims resulting from your professional services (available with professional liability add-on)
- First- and third-party damages resulting from a cyberattack, such as a data breach or phishing scheme (available with cyber liability add-on)
- Assault and battery damages (available with assault and battery add-on)
