All About Liquor

Liquor Liability Insurance was created to protect businesses, patrons, and third party bystanders from being held liable for property or physical damage resulting from an intoxicated patron acting in a destructive manner.  Any person or business that manufactures, sells, or serves alcoholic beverages can be held liable for injuries and property damage resulting from intoxication.  Therefore, any person or business that plans to sell or serve alcoholic beverages should purchase liquor liability insurance to protect their business and assets.  Even people that host parties where alcohol is being served are held liable by law, if something should happen to one of their guests during or after the event, while being intoxicated. 

Liquor liability means that any person or business that makes, sells, or serves alcohol is personally liable for any actions that may take place as the result of a person becoming intoxicated.  When a person is intoxicated they usually do not have the ability to make responsible decisions, and as a result they could become injured by getting into a fight, falling down, getting into an accident, or doing something else that could cause harm to themselves, to others, or to property.  To help protect business owners from being liable for events stemming from the sale of liquor, that may give a patron the right to sue, business owners purchase liquor liability insurance.  Purchasing liability insurance is one of the smartest things a business owner can do because without insurance, a business is vulnerable like a turtle without a shell it has no protection!

It can be quite expensive to start a business that serves alcohol.  Before insurance is purchased restaurants and liquor stores must first get a license from the state before they are legally able to sell and serve alcohol.   In New Jersey there was a rule enacted called “The Dram Shop Act”.  This act protects innocent business owners, servers, third parties, their property, and innocent patrons who became injured in an accident as the result of drinking too much.  As long as the server does not serve someone whom is visibly intoxicated they are protected under this act.  There is also a statute that protects the licensed server and innocent patrons from reckless behavior of a drunken patron.  This statute is called “New Jerseys Licensed Servers Fair Liability Act”.  This statute specifically defines the server’s liability as to make insurance coverage readily available, at a reasonable price. However, since this act specifically defines how the server can be held liable, it is very important that business owners and servers are informed as to their responsibilities under this act to ensure their protection against liability. 

Make sure your servers are Serv Safe and TIPS Certified! Get a good Liquor Liability Insurance Policy and confirm that it covers Assualt & battery! For more information on Liquor Liability or to request a quote. Please email us at 

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