What You Need to Know Retail Liquor Liability Insurance (2023 Update)

When couples begin to plan their wedding receptions, most of them are on information overload. Seating charts, cake tastings, shopping for bridesmaids dresses, booking vendors – for most couples, there’s too much to do and not enough time.

A detail that tends to fall off hosts’ radar – or something that they didn’t even know to consider – is making sure that their bartenders are properly insured, or making sure that their venue does not require a specific type of insurance for alcohol service.

There were a handful of times in 2022 in which venues required some of our clients to have a Retail Liquor Liability Insurance policy in order to permit alcohol service. Clients came to Top Shelf Bartending in a panic, as the bartenders they previously hired for their event or wedding reception did not have the requisite insurance.

While hosts do not need the protection of an insurance policy every time they serve alcohol at a party, there are a lot of potential problems that can arise at bigger events such as wedding receptions. It’s simply smart for hosts to obtain the use of an insurance policy that protects them from alcohol-related claims, if they are hosting a larger event.

This article will briefly discuss Retail Liquor Liability Insurance, how it differs from Host Liability Insurance, and why going with an insured company such as Top Shelf Bartending is a good idea.

What is Retail Liquor Liability Insurance?

Retail Liquor Liability Insurance is an annual policy held by businesses like Top Shelf Bartending. Unlike a Host Liquor Liability policy – which is a 1-2 day blanket policy purchased by, you guessed it, hosts – a Retail Liquor Liability Policy provides specific coverage for businesses or people who profit from the sale of alcohol.

A Retail Liquor Liability Insurance Policy is not a Liquor License. Companies like Top Shelf Bartending are not permitted to sell alcohol. What companies like Top Shelf can do is safely distribute alcohol and provide protection against alcohol-related injuries – primarily Driving Under the Influence (DUI) and related charges.

Does My Venue Require Insurance?

This is a question for the owner or venue manager.

Most venues are now requiring some form of insurance, and the types of insurance vary greatly from state to state. While a blanket policy such as a two-day Event Insurance policy could cover hosts, those policies rarely offer the same level of protection to venues or venue owners.

Because of this, many venue owners require hosts to obtain an additional alcohol-specific insurance policy, such as the Retail Liquor Liability policy held by Top Shelf Bartending.

Do I Need Insurance for My Event?

I prefer to talk openly with clients. If you are hosting 25 of your friends and neighbors in your home, then you probably don’t need the protection of an insurance policy.

But if you are hosting a larger event involving alcohol – anything above 50-70 guests – obtaining an insurance policy becomes more of a necessity.

The analogy I use is that hosting a party without insurance is a lot like driving a vehicle without insurance. If you’re making a quick trip from your home to the grocery store, you will probably be fine. But if you’re taking a four-hour road trip across state lines, it wouldn’t be smart to drive uninsured.

A similar tack can be applied to alcohol-related insurance. And as I wrote above, many venues are now requiring Retail Liquor Liability Insurance, as they have learned the hard way that Host Liability Insurance doesn’t provide adequate protection.

Considerations for Venue Owners

The laws for alcohol service at commercial venues vary greatly from state-to-state. Some states do not have Dram Shop Laws, which are third-party liability laws pertaining specifically to alcohol.

Other states, such as Pennsylvania, do have Dram Shop Laws. Insureon describes Dram Shop Laws in the following way:

In a state with dram shop laws, a business could have to pay damages for a drunk patron who gets into a fight with another customer, damages someone else’s property, or gets into a car accident – even if the incident happens elsewhere.

In short, venue owners need to be concerned with guest being served – or over-served – alcohol, and then injuring a third party after leaving the venue. This case most often presents itself as DUI, but could also include cases where over-served guests leave a given venue and then commit other damaging or injurious acts.

My recommendation, as someone who has overseen hundreds of events and wedding receptions, is that venue owners secure a Host Liquor Liability or Retail Liquor Liability Policy – or both – prior to an event or reception. Venue owners are exposing themselves to unnecessary risk if they do not.

A friend of mine uses the term “layers of protection” to describe the insurance setup at most commercial venues. While venues likely have a number of insurance policies on-hand, it’s still a good practice to have an additional policy that pertains specifically to alcohol service.

States with Dram Shop Laws

Top Shelf Bartending primarily operates in North Carolina and Pennsylvania. The laws between those two states vary quite a bit.

Pennsylvania is one of the strictest states in the nation when it comes to liquor control. Most venues are forced to contractually require Retail Liquor Liability Insurance for alcohol service, per Pennsylvania’s rigid liquor code.

Meanwhile, North Carolina is a considered a “grey area” state, as far as Dram Shop Laws are concerned. Venue owners in North Carolina aren’t as exposed to third-party liability in the same way as those in Pennsylvania, but most owners aren’t interested in a coin flip if a damaged party files a claim against their business.

Here are the states that have Dram Shop Laws, per Justice Guardians:

• Alabama
• Alaska
• Arizona
• Arkansas
• Colorado
• Connecticut
• Washington, D.C.
• Florida – Where adult patrons are concerned, Florida State statute restricts cases to injuries caused by “habitually addicted” drinkers, rather than the “visibly intoxicated” used in most other states.
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kentucky
• Maine
• Massachusetts
• Minnesota
• Mississippi – In Mississippi, evidence that a patron was “visibly intoxicated” is required for adults, as in most states, but also for minors. In other words, bars can not be held liable for injuries caused by intoxicated minors who weren’t visibly intoxicated when they were served alcohol.
• Missouri – Dram shop lawsuits in Missouri are limited to establishments licensed to serve alcohol “on the premises.” Bars and restaurants can be sued, but liquor stores usually can’t.
• Montana
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• Tennessee
• Utah
• Vermont
• Washington
• West Virginia

Several states “split the difference,” limiting dram shop claims to those involving intoxicated minors:

• Nebraska
• Nevada
• North Carolina
• Wisconsin

In short, I recommend you do your diligence within the state that you are hosting or where your business resides.

Conclusions on Retail Liquor Liability Insurance

What I would say in conclusion is that it’s a red flag if your bartender or bartending service does not hold a Retail Liquor Liability Policy. And it’s a double red flag if a bartender tries to skate by with a 1-2 day Event Insurance policy in a state that participates in Dram Shop Laws.

If you have additional questions about Retail Liquor Liability Insurance, Host Liquor Liability, Event Insurance, or covering your event for alcohol service, we’re here to help. Feel free to contact Top Shelf Bartending via the website, or email me directly at sfarrell11@outook.com.