Dram shop law

Published 2026-06-12 · by Brokly

In plain terms: A state law that can hold a bar or restaurant responsible when it serves a visibly intoxicated person who then injures someone.

Why it matters to you

It's the legal theory behind lawsuits against alcohol servers — and the reason liquor liability insurance exists. Whether your state has one, and how far it reaches, changes the risk of every pour.

Where you’ll see it

These laws vary state by state — the bar and restaurant state pages here quote each state's rule where one applies.

Related terms

Definitions describe how policies are typically structured — exact terms live in the policy. Not legal or compliance advice.