Liquor liability for restaurants

Published 2026-06-05 · Updated 2026-06-11 · by Brokly

Worth a look

If you serve alcohol — most states' dram-shop laws let someone hurt by an over-served guest sue the restaurant.

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)

What it costs — benchmark in progress

The same treatment our workers’-comp benchmarks already get: real filed-rate and quote data for liquor liability, by state and business size, fully sourced and dated. As quote data accumulates, this page becomes the liquor liability benchmark for full-service restaurants — same URL, real numbers.

Until then, see what full-service restaurants need state by state: Alabama · Arizona · Arkansas · California · Colorado · Connecticut · Delaware · District of Columbia · all states →

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