What is liquor liability insurance? 

Texas businesses that are engaged in the sale or service of alcohol could be financially liable for incidents that involve their customers. Should an intoxicated customer be injured or injure someone else, the business might be accused of having overserved. This can lead to substantial liability risk if no liquor liability insurance is in place.

Liquor liability insurance provides specialized protection for covered incidents that involve intoxicated customers. Should a business be liable for overserving, coverage may help with legal expenses.

Which Texas businesses need liquor liability coverage? 

Although liquor liability isn’t a legal requirement in Texas, it’s highly recommended for most businesses selling alcohol. Stores, bars, restaurants, breweries and nightclubs might all need a policy.

Without proper coverage, a single incident where an intoxicated customer is harmed or causes harm could be financially devastating. A simple accident like a slip-and-fall injury could lead to significant medical bills and lost wages, which the business might be liable for. Other incidents can have even worse financial implications.

Get A Quote

Evie has been my insurance agent for many years now. She is perhaps the most knowledgeable person in insurance I have ever dealt with and always gives you the information and available choices like you were family. Her service is exceptional and her advice has always been invaluable for me and my family. I can say without a doubt that I would highly recommend her for anyone’s insurance needs

As a good example of just how expensive a single incident can be, consider a scenario where two drunk customers get into a bar fight. Multiple parties might sue the business or overserving one or both customers:

  • The two customers could sue claiming that they were overserved
  • Bystanders could sue for unintended injuries they sustained during the fight
  • Anyone nearby could sue claiming that the fight caused them emotional distress
  • A driver could sue if their car sustained damage after the fight was taken outside

Anyone one of these lawsuits could result in costly legal defense fees, and the costs only multiply if more than one suit is filed. Any settlement that’s required would only add to the costs.

What incidents are covered under liquor liability?

The specific incidents covered under liquor liability depend on the terms, conditions and exclusions of a given policy. Generally, policies may cover:

  • “Slip-and-fall” accidents involving intoxicated customers
  • Sexual assaults perpetrated by intoxicated customers
  • Non-sexual assaults by intoxicated customers
  • Public fights and brawls involving intoxicated customers
  • DUI accidents involving customers who leave the premises with high BACs
  • Hospitalization due to alcohol poisoning 

For details on what a specific policy covers, businesses should consult an insurance agent specializing in liquor liability.

Are intoxicated customers’ injuries covered by general liability insurance?

General liability insurance usually provides coverage for customer injuries that occur in commonplace accidents, such as tripping or slipping. Most general liability policies exclude these accidents if the injured person is intoxicated at the time, however.

This is just one reason why businesses selling alcohol should get liquor liability coverage. The coverage can usually be bundled with general liability, but they are distinct protections.

Liquor Liability Insurance texas

How much do businesses pay for liquor liability coverage?

Premiums for liquor liability policies fluctuate based on several factors, often including the business’s annual revenue, percent of sales coming from alcohol, variety of beverages sold, and the business’s claims history. These are just a few of the details that can impact cost.

An independent insurance agent can provide customized quotes. They’re able to check policy options from several insurance companies, which makes it easy to find out how much each insurer would charge a particular business.

Where can Texas businesses find liquor liability insurance? 

If you need assistance finding liquor liability insurance for a Texas business, connect with the independent agents at Wise Insurance Group. Our agents will work with you to identify coverage needs, and then help you find a liquor liability policy that meets your business’s particular needs. Of course, we can assist with general liability and other coverages as well.

Let's start with a free quote!