Liquor liability insurance protects businesses that sell, serve, or distribute alcohol. This specialized insurance can cover claims of property damage or physical harm brought on by an intoxicated individual after being served alcohol by your business.

Liquor liability insurance assists with the following if your company is sued:

• Legal fees
• Settlements or judgments
• Property repair costs
• Medical expenses for treating injuries

Businesses commonly requiring liquor liability insurance include bars, breweries, restaurants, liquor stores, convenience stores, wineries, and grocery stores. Any business selling alcohol in Illinois, regardless of size, should consider this coverage. Sometimes, obtaining a liquor license or commercial lease is a legal requirement.

Liquor liability insurance typically includes:

• Assault and battery coverage: If a customer you served alcohol to physically harms another person.
• Drunk driving incidents: If an intoxicated person served by your business damages property or causes an accident resulting in injury to another driver.
• Property damage: Caused by a customer under the influence of alcohol.

Liquor liability insurance is especially crucial in states with dram shop laws, which can hold businesses accountable if they serve alcohol to intoxicated individuals who then cause injury or property damage.