Glossary

Liquor liability

Coverage for injury or damage caused by an intoxicated person that an alcohol-selling business served, which a general liability policy excludes for sellers.

Also called: dram shop insurance, liquor liability coverage, liquor legal liability, CG 00 33

Liquor liability insurance pays for bodily injury and property damage caused by an intoxicated person to whom your business sold or served alcohol. A patron leaves a bar, crashes, and hurts someone; the injured person sues the bar. Under state dram shop statutes, and in some states common-law negligence, the seller can be held liable.

The standard commercial general liability form, ISO CG 00 01, carries a liquor liability exclusion for any insured in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. Bars, restaurants, caterers, breweries, liquor stores and event venues therefore need a separate liquor policy or endorsement. ISO's stand-alone Liquor Liability Coverage Form is CG 00 33 (occurrence) and CG 00 34 (claims-made). A business that only occasionally hosts an event is not "in the business," so its CGL generally keeps host liquor coverage.

Watch three things. Premium is rated on alcohol sales, so underreporting invites a bigger bill at audit. Many liquor policies exclude assault and battery unless endorsed, and fights are a common source of bar claims. And licensing authorities, landlords and event contracts often set minimum limits. The guide on liquor liability and dram shop laws covers state differences, and host liquor liability for business events explains coverage for business events.

Last reviewed October 10, 2026

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Related terms

Commercial general liability (CGL) The standard business policy for claims that your operations, premises or products injured someone or damaged property, usually on ISO form CG 00 01. Exclusion A policy provision that removes coverage for specified perils, property, people or types of loss that the insuring agreement would otherwise include. Bodily injury Physical injury, sickness or disease suffered by a person, including death resulting from it; the harm that triggers liability coverage for injuries. Per-occurrence limit The most a liability policy will pay for all damages arising from a single occurrence, however many people are hurt or claims are made. Aggregate limit The most an insurer will pay for all covered claims during a policy period, however many separate occurrences or claims there are.

Related guides

Assault and battery exclusions What an assault and battery exclusion or sublimit removes from a liability policy, which businesses get one, and how to negotiate, price and plan around it. Host liquor liability for business events When general liability covers alcohol at a holiday party or client event, when it does not, and how to shift the risk to caterers, venues and bartenders. Liquor liability insurance and dram shop laws Why general liability excludes alcohol claims, how dram shop laws make sellers liable, what a liquor liability policy covers, and what drives its price. Special event insurance How short-term event liability policies work, what they cover and exclude, what venues and permits require, and when your annual policy is enough.

Related insurers

Auto-Owners Insurance Lansing, Michigan mutual that sells only through independent agents in 26 states; a top-10 U.S. writer of commercial package, commercial auto and fire. Donegal Insurance Group Pennsylvania regional founded in 1889: a mutual plus its Nasdaq-listed affiliate. It sells BOP, package, auto and comp through independent agents in 21 states. GNY (Greater New York Mutual) New York mutual founded in 1914 that writes package policies for apartment, co-op, office, restaurant and light industrial risks in 16 states and D.C. SECURA Insurance Wisconsin mutual founded in 1900 that sells business, nonprofit, special-event and farm insurance in 13 states through independent agents. Utica National Upstate New York mutual founded in 1914, known for school, volunteer fire department and insurance agents' E&O programs, sold through independent agents.

Related industries

Bar and tavern insurance Why a bar needs its own liquor liability: dram shop exposure, assault-and-battery limits, general liability, comp, property, and what licenses require. Brewery, winery and distillery insurance Insurance for craft breweries, wineries and distilleries: product liability and recall, taproom liquor liability, stock and spoilage, fire, and federal bonds. Catering insurance Insurance for caterers: GL with food liability, host liquor and venue requirements, delivery auto, equipment cover and event exposures. Convenience store and gas station insurance Robbery, fuel and tank pollution, alcohol and tobacco sales, spoilage and late hours drive convenience store and gas station insurance. Event planner and venue insurance What event planners and venues need: GL with venue additional insured wording, professional liability, cancellation cover, liquor liability and venue contracts. Hotel and motel insurance Insurance for hotels, motels and inns: property and business income, guest liability, innkeepers coverage, comp, liquor, cyber and franchise requirements.

Related en español

Seguro de responsabilidad por venta de alcohol y leyes dram shop Por qué la responsabilidad civil general excluye el alcohol, cómo las leyes dram shop responsabilizan al vendedor, qué cubre la póliza y su precio.