Dram Shop Insurance
Safeguard your business with A+ rated dram shop insurance today!
*Prices vary by state
What Is Dram Shop Insurance?
Dram shop insurance includes general liability and liquor liability policies to protect your business from every angle. Whether a customer slips by the bar or a drunk patron causes a fender bender, your coverage provides a financial safety net designed to mitigate or eliminate your out-of-pocket costs.
Also called liquor liability insurance, dram shop insurance covers alcohol-serving businesses, including bartenders, caterers, food vendors, private chefs, and more.
How Much Does Dram Shop Insurance Cost?
Dram shop insurance starts at $35.42 per month for an annual policy. If you need dram shop insurance for a special event, you can get a 1–3 day policy starting at $275.
Your final price depends on several factors:
- Where you operate
- How much coverage you need
- Optional add-ons
- Claim history
- Gross business income
Who Needs Dram Shop Insurance Coverage?
Any business that sells, serves, or manufactures alcoholic beverages needs to carry dram insurance. This includes:
- Bartenders
- Wedding vendors
- Event vendors
- Food vendors
- Private chefs
Depending on where you operate, your state may require you to have insurance before you can get permits or licenses. Additionally, most venues require vendors to provide a Certificate of Insurance (COI) as part of their contractual agreement.
Get the Best Dram Shop Liability Insurance from Insurance Canopy
Our A+ rated policy protects you from the most common claims alcohol-serving businesses face, including third-party bodily injury and property damage. This comprehensive coverage ensures you stay compliant with your local dram shop laws.
You can opt for annual or event liquor liability coverage and customize your policy to meet your unique business needs. Some options include:
- Tools and Equipment (Inland Marine): Pays to repair or replace damaged or stolen business gear.
- Assault and Battery: Extends coverage to damages resulting from a physical altercation between intoxicated customers.
- Cyber Liability: Helps cover losses caused by cybercrimes, such as data breaches and ransomware.
Once you enroll, you can access your policy 24/7 via the online user dashboard. View your Certificate of Insurance (COI), make changes to your account, and file a claim, all at your convenience.
Dram Shop Insurance Coverage Details
Basic Coverage Limits Shown Below
The most your policy will pay for bodily injury and property damage claims that you become legally obligated to pay.
$2,000,000
The maximum amount your policy will pay for bodily injury and property damage claims that result from the products you use to perform your services. However, it does not cover your products that are sold or distributed.
$1,000,000
The amount that your policy will pay for claims arising out of one or more of the following offenses: – False Arrest, detention or imprisonment
– Malicious prosecution
– Wrongful Eviction or Wrongful Entry
– Oral or written publications that slander or libels a person or organization
– Oral or written publication or material that violates a person’s right of privacy
– The use of another’s advertising idea in your advertisement
$1,000,000
The maximum the insurance carrier will pay for a bodily injury or property damage claim that you become legally obligated to pay.
$1,000,000
Applies to damage by fire to premises rented to the insured and to damage regardless of cause to premises (including contents) occupied by the insured for 7 days or less.
$100,000
Reimburses others, without regard to the insured’s liability, for medical or funeral expenses incurred by such persons as a result of bodily injury (BI) or death sustained by accident under the conditions specified in the policy.
$5,000
Questions About Dram Shop Insurance Coverage
What Is Dram Shop Law?
Dram shop law is a statute that holds alcohol-serving businesses responsible for any accidents caused by an intoxicated customer. Most states hold bartenders and servers responsible if they overserve or provide alcohol to an underage patron who goes on to cause injuries or damage.
You could be responsible for major expenses like court costs, medical bills, and repair fees that add up to thousands of dollars. However, dram shop insurance can help absorb some or all of those costs.
Which States Have Dram Shop Laws?
42 states and the District of Columbia have dram shop liability laws. The eight states that do not have dram shop laws include:
- Delaware
- Kansas
- Louisiana
- Maryland
- Nebraska
- Nevada
- South Dakota
- Virginia
What Claims Does Dram Insurance Cover?
Dram insurance covers common claims that alcohol-related businesses face, including third-party bodily injury, property damage, and liquor liability claims. Here are some examples:
- A customer slips and falls on a spilled drink near the bar, fracturing their ankle.
- After having several drinks, an intoxicated patron gets behind the wheel and backs into the venue, damaging the brick veneer.
- Two drunk guests get into an argument and break a glass table at a wedding reception.
How Do I Get Dram Shop Insurance?
- Create or sign into your Insurance Canopy account
- Fill out a quote application
- Enjoy the safety and security that dram shop coverage provides!
Need additional information before making a decision?
Give our team a call today at 844.520.6993
Dependable Dram Shop Insurance Coverage
Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming
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