Best Liquor Liability Insurance

Stephanie is an expert on insurance and small business.

Liquor liability insurance pays the fees and judgments arising from liquor liability claims rather than it coming out of your own pocket. Not all insurance companies offer liquor liability coverage. Of those that do, many only offer it as an add-on to an existing business liability policy.

We reviewed more than 30 companies before choosing the six best liquor liability insurance companies based on types of coverage options including liability addendums, pricing, regional availability, risk classes that were excluded and financial stability ratings. Be sure to check with the laws in your state regarding your business or event before shopping around for coverage.

The 6 Best Liquor Liability Insurance Companies of 2024

• Best Overall: Westchester Binding
• Best for Small Business: biBERK
• Best for Bars: Admiral
• Best for Restaurants: Founders Insurance
• Best for Hosts: Markel
• Best for Caterers: FLIP

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• Our Top Picks
• Westchester Binding
• biBERK
• Admiral
• Founders Insurance
• Markel
• FLIP
• See More (3)

Best Overall : Westchester Binding

Westchester Binding wins our best overall for liquor liability insurance companies thanks to the flexible and comprehensive coverage options offered by their monoline liquor liability insurance policies. Liquor liability is available to a variety of businesses and services, from private clubs to wholesale distributors, bars, and everything in between. Westchester provides up to $2 million in liability protection.

• Coverage is offered for retail establishments, bars, nightclubs, caterers, bartenders, banquet halls, and even private fraternal clubs, just to name a few
• Liquor liability policies can provide up to $2 million in coverage
• There is no cap on alcohol sales
• Assault and battery coverage is available
• On-premises and off-premises operations on one policy

• Wineries, after-hours clubs, and establishments with aggressive drink specials are restricted
• You may have trouble getting coverage if you have a history of prior liquor or assault and battery claims
• Not offered in all states
• Certain businesses are subject to lower sublimits than others

Westchester Binding is a subsidiary of Chubb, a worldwide insurance company with roots reaching back to 1792. The company offers a number of insurance policy types, including liquor liability coverage with limits up to $2 million. These policies are flexible as to the type of company that can purchase the policy. There is no sublimit to the assault and battery coverage (except for adult clubs), and legal defense costs are not counted as part of the coverage limits, all of which is why it is our top choice.

Liquor liability policies through Westchester are available as standalone products to a variety of businesses, including but not limited to bars, nightclubs, restaurants, retail shops, banquet halls, catering/bartending services, and wholesale distributors, and private fraternal clubs. Though Westchester operates in all 50 states and the District of Columbia, liquor liability coverage cannot be purchased in all states.

Policies are available whether or not you are licensed, but there are some restrictions for certain types of businesses including wineries, after-hours clubs, operations offering bottle service, and businesses with a history of related claims, to name a few.

Chubb and its U.S. subsidiaries have an A++ (Superior) rating from AM Best. It also has a significantly lower-than-average complaint index through the National Association of Insurance Commissioners (NAIC). You must contact a Westchester representative for more information and a quote.

Best for Small Business : biBERK

biBERK offers comprehensive business liability protection with the option to add liquor liability. A Berkshire Hathaway company, biBERK policies include a long list of coverage options to help personalize the policy to fit your company’s needs. Since they don’t use brokers or other middlemen, you can save up to 20% on premiums, earning this insurer the top spot for small business coverage.

• You can get a quote entirely online or speak to an agent if you want a more personalized touch
• Policies are offered directly; since there are no brokers, policies cost up to 20% less than with other insurers
• All of biBERK’s underwriter companies are A++ rated
• Claims can be filed online, by the phone, or by email

• Right now, BOP policies are only offered in 28 states while general liability policies are in only 27 states
• You’re unable to choose your own liquor liability coverage limits online
• Standalone liquor liability insurance is not available
• Temporary policies are not offered; only annual coverage can be purchased

As a small business owner, you already know that buying a solid business liability insurance policy is necessary. If your business sells, distributes, or serves alcohol, though, buying liquor liability coverage can be just as important.

Part of the Berkshire Hathaway Insurance Group, biBERK was founded in 2015 to provide insurance coverage to business owners. All of the companies under this Berkshire Hathaway umbrella hold A++ (Superior) financial stability ratings from AM Best, which are the highest possible marks.

Though biBERK does not offer liquor liability policies on their own, coverage can be purchased along with a business liability policy, such as general liability or a BOP (business owner’s policy), with a variety of coverage options from which to choose. Getting a quote online is simple, though you can also call and speak with an agent if you have questions or need to make specific changes to your coverage.

While biBERK does write policies nationwide, BOP coverage is currently only available in 28 states and general liability coverage is only offered in 27. Premiums will vary based on your business’ needs and specific factors.

Because of its low premiums and customizable coverage options, biBERK is our top choice for small business liquor liability insurance.

Best for Bars : Admiral

With few exclusions and restrictions, Admiral offers liquor liability coverage in 47 states for businesses like bars, which are typically more difficult (and more expensive) to insure. Up to $1 million in coverage can be purchased along with a general liability policy or as a monoline (standalone) policy, earning Admiral our top spot as the best liquor liability insurance for bars.

• Liquor liability coverage can be part of a general liability policy or monoline
• Coverage is offered in 47 states
• Compared to other insurance companies, Admiral does not have many excluded classes for coverage
• Offers liquor liability coverage limits up to $1 million
• Assault and battery coverage up to $250,000 is available

• Policy will need to be purchased through a broker
• Admiral will not speak to you directly about your policy; instead, they will refer you to your local broker

Admiral Insurance Group has been providing insurance coverage to moderate- or high-risk businesses since 1974. They currently hold an A+ (Excellent) financial stability rating from AM Best and are a member of W.R. Berkley Corporation.

You can purchase liquor liability protection for your bar as monoline coverage or as part of a general liability policy. Coverage cannot be purchased online, however, nor will Admiral answer direct questions for you about your policy; instead, the company relies on their network of brokers and will refer you to a trusted agent in your area.

Because many liquor liability policies will exclude businesses that stay open late or have live entertainment, Admiral Insurance may be a good option to consider for your bar. They only have a few excluded classes, which include bars that operate as gentleman’s clubs, host under-21 nights, allow mosh pits, operate as a concert venue, and/or allow firearms. Otherwise, though, up to $1 million in flexible, customizable coverage is available for bars, which is why Admiral wins this category.

The $1 million limit is for liquor liability and assault and battery coverage up to $250,000 is available to add. Coverage can be purchased in 47 states (exclusions include Alabama, Alaska, Iowa, and the District of Columbia).

Best for Restaurants : Founders Insurance

Founders Insurance earns the title for best restaurant liquor liability insurance, with monoline policies that are geared specifically toward businesses in the hospitality industry. Their policies are flexible, even allowing for restaurants that stay open late, provide live entertainment, or have submitted liability claims in the recent past.

• Offers monoline liquor liability in 18 states
• Wide range of accepted risk classes
• Up to $2 million in aggregate liquor liability coverage

• Online quotes not available
• Assault and battery coverage is excluded in some states
• Coverage needs to be purchased through an agent

If you own a restaurant, you already know many of the liabilities that pose a risk to your business. Selling, serving, or distributing liquor to customers amplifies that risk; you could be held liable if your employees were to serve a minor, over-serve an intoxicated patron, or if someone you serve leaves your establishment and causes an accident.

Founders Insurance offers monoline liquor liability coverage in 18 states to help protect your restaurant business, even if you fall into certain risk categories by providing live entertainment, staying open late, or having a history of recent liability claims. Because of this, Founders earns the top spot for the best liquor liability insurance for restaurants.

Though Founders has been around since 1901, the company has been specifically providing insurance coverage to businesses in the hospitality industry since the 1950s. They are headquartered in Des Plaines, IL, and hold an A- financial stability rating from AM Best.

Monoline liquor liability coverage through Founders covers up to $1 million per occurrence ($2 million aggregate). While assault and battery coverage is excluded in most states, up to $1 million in coverage can be added to your policy for an additional charge (not available in Alabama).

Founders offers flexible risk acceptance, making coverage possible for restaurants that stay open late (compared to area closing times), have had previous claims, offer live entertainment, and those that are new ventures. There is no deductible for this coverage, either.

Best for Hosts : Markel

Markel Insurance takes the top spot for host liquor liability insurance, offering specialty event coverage starting as low as $75. Policies can be purchased up to the day before your event and cancellation coverage can also be added on for an additional cost.

• Coverage is available for private parties, wedding events (rehearsal, ceremony, reception), or business/organization events
• Buy a policy as late as one day before your event
• Coverage is guaranteed to meet your venue’s insurance requirements (or your money back)
• Host liquor liability coverage is automatically included on all special event policies, though it can be excluded for a premium credit

• Policies are not offered if your event will include animals, firearms, or amusement devices such as bounce houses, dunk tanks, inflatable slides, or moon walks
• Only three coverage options to choose from, with a maximum of $2 million aggregate
• If you want the maximum coverage allowed, you’ll need to certify that a licensed vendor or caterer will be serving the alcohol at your event

Markel has been providing niche insurance since 1930. Coverage is provided by a number of different insurers within the Markel umbrella, including Essentia, FirstComp, Markel American, Markel, and SureTec insurance companies. Markel has an "A" AM Best rating, which is considered excellent.

Through Markel Insurance, you can purchase liability coverage for a variety of functions, whether you are hosting a business or organization event, private party, or wedding event (such as your rehearsal dinner, a welcome gathering, the wedding ceremony, or just your reception). Host liquor liability coverage is automatically added onto these special event policies—with limits starting at $500,000—providing protection against bodily injury, property damage, and more. This simplicity makes it great for hosts who don’t need this coverage often.

Buying a policy through Markel is simple and can be completed entirely online. Once you select your policy coverage limits and preferred options, you’ll immediately be given a price. From there, you have the option to either save your quote or make the purchase. If you’re looking to buy event liability coverage, it can be purchased up to one day before your event, which is why they win our category for best host liquor liability coverage. You can also purchase cancellation coverage 14 days prior to the event.

As with all insurance policies, your insurance premiums will depend on a number of factors including your chosen coverage limits and specific details about your event. However, we found that for a Virginia wedding, five months down the line, with $500,000 in event coverage and liquor liability protection, premiums were going to be $150. The liquor liability deductible was also $150 for any claims made on the policy.