Liquor Liability Insurance

Insurance for bars and restaurants must include a form of coverage known as liquor liability insurance, also known as dram shop liability insurance.
If you serve alcohol, you need liquor liability insurance

Today we measure the amount of alcohol used in drinks by the shot.  But in colonial America gin and other alcoholic drinks were measured in unit shared by apothecaries.   This measurement was known as a Drachma or Dram.   

Dram Shop Liability Insurance, more commonly knowns as Liquor Liability Insurance is the insurance vehicle used to transfer liquor-related liability that is a part of serving or selling alcoholic beverages.  This coverage provides protection against serving intoxicated individuals or minors. 

Who is required to have a Liquor Liability policy?  If you own a bar or any other venture that sells or serves alcohol, most states will require it.
Protect yourself from intoxicated guests.

When individuals drink too much they not only pose a risk to themselves, they are also a threat to others.  As an owner of a restaurant and bar, you have potential financial exposure if you allow intoxicated patrons to drive. 

Alcohol at weddings: Step 1, hire a qualified bartender.

But bars and restaurants aren’t the only places that you will find liability associated with alcohol.  Liquor Liability can show up at casinos, sporting venues, and even the office Christmas party.  Individuals are not exempt for this exposure.  Graduate parties, reunions, and even your wedding could be marred by the actions of an over-served guest. 

Liquor liability insurance will help you reduce your exposure should an unfortunate event occur. But your first and best way to reduce your personal exposure is to hire a professional bartender. Pouring drinks is the easy part of bartending, not pouring one to the wrong person is the real job.

Insuring Kentucky Restaurants


Restaurants without insurance don't stay in business long.  Call TruePoint and speak with a Kentucky restaurant insurance  specialist.
Great Home Cooking, Bad Home Cooking, Little Middle Ground The same can be true with commercial insurance agents.


Factors Influencing Premiums

Obtaining insurance for a restaurant is fairly simple.  However, finding the correct coverages at a reasonable price may be a bit more difficult.  Different cuisines, Franchises versus Mom and Pop, and the processes utilized for cooking are just a few of the factors that may influence a restaurants premium.  Other factors can have a more dramatic impact on premiums.  Alcohol sales, entertainment (such as live music or karaoke) and dance floors may make it harder to find coverage, which by default will push the cost of coverage higher.


Restaurant Safety                                               

Don't forget liquor liability coverage.  If you have a bar or serve alcohol of any kind this coverage is essential.
Don’t forget liquor liability coverage

Cooking areas are required to have automatic fire extinguishing devices.  Hoods and filters must be in place if grills and deep fat fryers are used.  Additional requirements will be fuel shut-offs, hand-held fire extinguishers, as well as receipts providing proof that inspections and hood cleaning are being performed as required.

insuring restaurants begins in the kitchen.  Call TruePoint Insurance for insurance risk profile
Restaurant Safety Starts in the Kitchen

Minimum Coverages

At a minimum, the following factors must be considered before purchasing a commercial insurance policy for a restaurant:

  • Property Coverage-building, equipment, and inventories
  • Autos
    • All vehicles owned by the businesses
    • Employee vehicles should be covered by a hired and non-owned vehicle policy if they are used in business activities (even it’s occasional)
    • It is important that you make your agent aware of any vehicle, owned or non-owned, that is used for delivery
  • Business Income –In the event, your business is temporarily shut down due to a covered cause of loss, restaurants with business income coverage can access their insurance policy for loss of income.
  • Workers Comp Coverage-Is mandated and enforced by each state
  • If you server alcohol, your restaurant will need Liquor Liability Insurance.

This quick summary of restaurant insurance is not meant to be inclusive, nor is it a one size fits all.  Each restaurant is unique and insurance requirements vary.  If you would like additional information regarding a restaurant in Kentucky Tennessee or Indiana, contact a TruePoint Insurance Restaurant Specialist at or visit our website at