Restaurant coverage guide
Liquor liability for restaurants
Updated 2026-06-11 · by Brokly
If a guest you served alcohol then hurts someone — dram-shop laws can make the restaurant liable.
Coverage
What it covers for full-service restaurants
Covers the restaurant when someone injured by an intoxicated individual sues the establishment that served the alcohol. A majority of states have dram-shop laws creating this liability (Maryland, for one, does not), and nine states require liquor licensees to show proof of coverage (or an approved equivalent) as a license condition. Serving alcohol creates dram-shop exposure: the restaurant itself can be sued for harm an over-served guest goes on to cause.
Sources: Connecticut General Assembly, Office of Legislative Research — dram-shop report 2007-R-0730 (as of 2007 report, retrieved 2026-06-06) · Maryland General Assembly, Department of Legislative Services — HB 102 fiscal & policy note (2015) (as of 2015 session, retrieved 2026-06-06)
By state
Liquor liability by state
What full-service restaurants need varies by state. See the full guide for full-service restaurants in your state: Alabama · Arizona · Arkansas · California · Colorado · Connecticut · Delaware · District of Columbia · all states →