What liquor liability insurance covers in Washington
Liquor liability insurance (also called dram-shop insurance) protects you from lawsuits and settlements arising from serving alcohol. It covers defense costs, judgments, and settlements when an injured person claims you served them or someone you served.
- Third-party liability. when someone injured by an intoxicated person (from someone you served) sues you for wrongful death, injuries, or property damage
- On-premises liability. injuries or property damage at your bar, restaurant, or event venue caused by intoxicated patrons
- Host liability. you're sued for injuries to a guest because you served alcohol to someone who then injured them
- Event liability. you host an event (wedding, corporate party, or fundraiser) and serve alcohol; guest is injured by an intoxicated attendee
- Legal defense. defense costs, attorney fees, and investigative expenses
Washington's dram-shop liability law
Washington's dram-shop statute (RCW 66.44.200) imposes liability on alcohol servers and sellers in two circumstances: (1) serving alcohol to a person whom the server knew or should have known was under the legal drinking age (21 years old), or (2) serving alcohol to a person who appears to be intoxicated (visibly showing signs of intoxication — slurred speech, unsteady gait, impaired judgment). If someone is injured by an intoxicated person you served, or if the intoxicated person injures themselves, you can be held liable.
Washington does not recognize a broad social-host exemption. Even if you're simply serving alcohol at a private event (not in the business of selling alcohol), you can face liability if you serve someone obviously intoxicated or underage and they cause injury. This is why event planners, venues, and property owners hosting parties should carry liquor liability coverage.
Who needs liquor liability in Washington
- Bars, nightclubs, and taverns (primary exposure)
- Restaurants with full bar service
- Breweries, wineries, and distilleries offering tastings or on-premise consumption
- Hotels and motels with bars or room service
- Country clubs and private clubs serving alcohol
- Event venues and banquet halls serving alcohol at client events
- Caterers and wedding planners serving alcohol at events
- Nonprofits holding fundraisers or events with alcohol
- Property owners hosting private events and serving alcohol
What your liquor liability policy should include
A good liquor liability policy should cover defense costs, judgments, and settlements for third-party liability claims. Most policies include a limit of $300,000 to $1 million per occurrence, with aggregate limits ranging from $500,000 to $2 million annually. Some carriers offer host-liquor liability endorsements to cover private events where you're serving alcohol but not selling it commercially.
Coverage should extend to employees' actions (bartenders, servers, security staff) and should defend you even if a claim seems frivolous. Some policies exclude coverage for violations of Washington alcohol-serving laws (like serving obviously intoxicated persons), so review the policy carefully.
What liquor liability costs in Washington
Premiums vary based on your type of business, annual alcohol revenue, number of seats or capacity, location, and loss history. A bar or nightclub might pay $1,000 to $3,000 per year for $1 million in coverage. Restaurants with beer and wine service (not full bars) often pay $500 to $1,500 annually. Event venues or caterers might pay $300 to $800 per event or $1,000 to $2,000 annually for broad event coverage.
Why buy liquor liability through Maru
Liquor liability carriers have different appetites for different venues and regions within Washington. Some specialize in bars and restaurants; others focus on nonprofits or event venues. Maru knows which carriers are active in Washington, understands the nuances of your venue type, and will ensure you're getting adequate coverage at a fair price. We'll also coordinate liquor liability with your general liability and property policies for a complete package.
Frequently asked questions
Is liquor liability insurance required in Washington?
What is Washington's dram-shop law?
Can I be liable if someone I served gets drunk and injures themselves?
Does my general liability insurance cover liquor liability?
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Written and reviewed by a licensed Maru advisor. Maru Insurance is an independent agency (WA License WAOIC #1365574, FL License #G363233) representing multiple A-rated carriers across Washington and Florida.
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