What is Drinking Places Insurance?
Drinking places insurance is a type of business insurance designed for establishments that primarily serve alcoholic beverages for on-premises consumption. This includes bars, taverns, nightclubs, lounges, and other similar venues. Because these businesses face unique risks—such as liquor liability, property damage, and customer injury—they require specialized coverage that goes beyond standard business policies.
Who Needs It
Any business that serves alcohol as its main source of revenue should consider drinking places insurance. This includes:
- Bars and taverns
- Nightclubs and dance halls
- Lounges and cocktail bars
- Breweries and distilleries with tasting rooms
Even if your venue also serves food or hosts live entertainment, if alcohol sales are a major part of your operations, this coverage is essential.
What It Typically Covers
Drinking places insurance often includes a package of coverages tailored to the industry. These may include:
- Liquor liability: Covers claims related to alcohol-related incidents, such as injuries or property damage caused by intoxicated patrons.
- General liability: Protects against third-party bodily injury and property damage claims.
- Property insurance: Covers damage to your building, equipment, and furnishings due to fire, theft, or other hazards.
- Assault and battery coverage: Helps cover legal and medical costs from altercations that occur at your venue.
- Business interruption: Provides income replacement if you have to temporarily close due to a covered event.
Common Exclusions and Limitations
Like all insurance policies, drinking places insurance has exclusions. Common ones include:
- Intentional acts or illegal activities
- Underage alcohol service or over-serving patrons
- Claims outside the scope of covered events (e.g., employee theft unless specifically added)
Always review your policy details to understand what is and isn’t covered.
Factors That Influence Cost
Several factors affect the cost of drinking places insurance, such as:
- Type and size of the establishment
- Annual alcohol sales volume
- Hours of operation (late-night venues may have higher premiums)
- Security measures (e.g., bouncers, surveillance cameras)
- Claims history and location
Each business is unique, so insurers assess risk based on your individual profile.
Proof of Insurance and Compliance
Many states and local governments require proof of liquor liability insurance before issuing or renewing a liquor license. Additionally, landlords, event organizers, and vendors may also require you to carry specific coverage limits. Keeping your insurance active and up to date helps ensure compliance and protects your business from unexpected losses.
How to Get a Quote
To get customized coverage for your drinking establishment, start by getting a quote tailored to your business needs. Get a quote today.
Frequently Asked Questions
Is liquor liability included in general liability insurance?
No. Most general liability policies exclude liquor-related incidents. You typically need separate liquor liability coverage.
Do I need insurance if I only serve beer and wine?
Yes. Any business that serves alcohol—even beer and wine—can be held liable for alcohol-related incidents and should carry proper coverage.
Will insurance cover fights or altercations in my bar?
Only if your policy includes assault and battery coverage. Otherwise, these incidents may be excluded.
Can I get coverage if I’ve had past claims?
Yes, but your premiums may be higher. Insurers will assess your claims history when determining risk.
Is this type of insurance required by law?
Requirements vary by state and local jurisdiction. Many areas mandate liquor liability insurance to obtain or renew a liquor license.
Still have questions? Talk to a local insurance expert.