Dram Shop Liability Insurance
What Does Dram Shop Liability Insurance Mean?
Dram shop liability insurance, also known as liquor liability insurance, is a policy specifically for businesses that sell and serve alcoholic beverages. It offers protection against claims arising from accidents or incidents linked to alcohol-induced behavior occurring on the business’s premises.
Insuranceopedia Explains Dram Shop Liability Insurance
Dram shop liability insurance provides legal support for owners of bars, taverns, inns, or other establishments that could face legal issues due to disruptive or illegal actions linked to alcohol sold at their premises. This may include incidents such as physical altercations, self-harm, or mistakenly serving alcohol to a minor. Many insurers offering this policy also provide training to help establishments prevent these types of incidents. In some states, dram shop liability insurance is mandatory for operating an alcohol-focused business.
