Does Standard Restaurant Insurance Cover Alcohol-Related Accidents?


Picture this scenario. You own a restaurant. One night, a few guys come in for dinner and have a few drinks at your establishment. After enjoying some good food and strong drinks, they leave for the night. On the way home, one of those guys who is driving crashes his vehicle and causes a deadly accident. Guess who could possibly be held responsible for the damage? Your restaurant.

Dram shop laws were put in place to keep establishments that serve alcohol to patrons responsible accountable for any injuries, damages, or even deaths caused by intoxicated patrons. These laws can be enforced through civil lawsuits, and DUI victims and their families can sue alcohol-serving establishments for monetary damages. These lawsuits can result in huge financial payouts. For example, in one case back in 1999, a New Jersey jury awarded the family of a girl who was paralyzed by a drunk driver $135 million after determining that the driver was over-served at a football game he had attended.

That’s why it’s so important to make sure your restaurant insurance includes liquor liability coverage. You might think your standard restaurant insurance policy fully covers your business, but in most cases, a basic restaurant insurance policy doesn’t include liquor liability coverage.

Restaurant Insurance in Texas: The Importance of Liquor Liability Insurance Coverage

If your restaurant serves alcohol, you absolutely need to make certain you have proper liquor liability coverage. A good liquor liability policy as part of your restaurant insurance plan will protect your business against lawsuits that can stem from alcohol-related accidents. This coverage could literally save your business by protecting you from costly, multimillion dollar lawsuits.

Liquor liability insurance isn’t something you can afford to gamble on. Even if you have a highly trained bar and server staff, patrons could still have a little too much to drink, and accidents can ensue. In fact, the state of Texas is home to more fatal drunk driving accidents than any other state. Back in 2011, 1,213 people died as the result of drunk driving auto accidents. Drinking and driving is a major problem across the state, so it’s especially important to make sure your restaurant insurance Texas policy provides extensive liquor liability coverage.

Most Basic Restaurant Insurance Policies Don’t Include Liquor Liability Coverage

It’s scary to think about, but an estimated 65% of restaurants and bars that need liquor liability insurance don’t have a policy. If your restaurant serves alcohol and you aren’t covered, you need to contact your restaurant insurance agent today and update your policy to make sure you’re protected.

Most restaurant owners mistakenly believe their policy includes liquor liability coverage, but that’s rarely the case. In most instances, liquor liability policies are sold as add-on protection to existing restaurant insurance commercial liability policies or as an entirely separate policy.

Of course, liquor liability coverage can be a little costly. That’s another reason a lot of restaurant owners don’t have the coverage. They simply don’t want to spend the money for it. But think about this – what’s going to be more expensive, paying for liquor liability insurance or getting sued by the family of a drunk driving victim who was harmed by someone served alcohol at your establishment?

It’s just not worth the risk to run a restaurant without liquor liability insurance. There are already enough risks in running a restaurant, so the last thing you want is to stack the odds even further against your success.

Learn More about Restaurant Insurance in Texas

Want to learn more about restaurant insurance in Texas? For all your restaurant insurance needs, talk to the knowledgeable, experienced team at Food & Beverage Insurance Agency. We provide quality, affordable restaurant insurance in Dallas, Houston, Austin, San Antonio, and across Texas. Visit to learn more.