Dram shop laws in your state

The term “dram shop” refers to when bars sold alcohol by the dram, which is a small serving, typically less than a U.S. shot of liquor. A dram shop law is a state liquor law that places the blame for damages caused by intoxicated individuals on the establishment that served them.

In a state with dram shop laws, a business may have to pay damages for a drunk patron who gets into a fight, damages someone else’s property, or gets into a drunk driving accident—even if the incident happens elsewhere.

Dram shop and social host liability laws were both created to prevent alcohol-related physical harm or property damage by holding the server accountable for damages. However, dram shop laws apply to commercial businesses that serve alcohol, such as bars and restaurants, while social host liability laws are meant for individuals who serve alcohol at private residences.

For example, if someone hosts a party in their home, social host liability laws hold them accountable for injuries caused by an intoxicated guest, or if they knowingly serve alcohol to a minor who then causes injury.

Social host liability laws vary by state, so it’s important to understand what regulations are in place where you live so that you can keep yourself protected.

In most states with dram shop laws, your business is held liable when you serve a visibly intoxicated person. However, the law varies from state to state.

Since each state makes its own laws and these laws change over time, it’s important to research your state's current dram shop laws.

The majority of states have dram shop laws that hold businesses liable for the actions of individuals who become intoxicated at their establishments.

Here are the states with dram shop laws:

• Alabama law: Holds business owners accountable if the establishment illegally sells alcohol to someone who is visibly intoxicated.
• Read more about Alabama Senate Bill 104

• Alaska law: A business can be held liable for selling alcohol to someone underage or drunk.
• Read more about Alaska Statutes Section 04.21.020, Section 04.16.030, and Section 04.16.051

• Arizona law: A business owner could be held liable if the business sells alcohol to someone who is obviously intoxicated or a minor.
• Read more about Arizona Revised Statutes Section 4-311 and Section 4-301

• Arkansas law: Can hold business owners accountable if they sell alcohol to someone underage or visibly intoxicated.
• Read more about Arkansas Code Section 16-126-103, Section 16-126-104, and Section 16-126-106

• California law: Business owners can be held liable for selling alcohol to visibly intoxicated minors.
• Read more about California Business and Professions Code Sections 25602 and 25602.1 and Civil Code Section 1714

• Colorado law: Can hold business owners accountable for selling alcohol to someone underage or visibly intoxicated.
• Read more about Colorado Liquor Enforcement Laws, Rules, and Regulations

• Connecticut law: If a business sells alcohol to an intoxicated person, it can be held liable.
• Read more about Connecticut General Statutes Section 30-102

• Florida law: Can hold businesses liable for selling alcohol to known alcoholics or underage patrons.
• Read more about Florida Statutes Section 768.125 and Section 856.015

• Georgia law: A business owner can be held accountable for selling, furnishing, or serving alcohol to someone who is obviously intoxicated or a minor.
• Read more about Georgia Code Section 51-1-40

• Hawaii law: Should a business serve alcohol to a patron who is clearly intoxicated or underage, and that person causes injury, the business owner can be held liable for the subsequent harm.
• Read more about Hawaii Revised Statutes Chapter 281

• Idaho law: Can hold businesses liable for selling alcohol to someone underage or visibly intoxicated.
• Read more about Idaho Code Section 23-808

• Illinois law: If a business causes someone to become intoxicated or serves alcohol to minors, the owner can be held liable.
• Read more about 235 Illinois Compiled Statutes (ILCS) Section 5/6-21 and 740 ILCS Section 58/5

• Indiana law: Businesses that furnish alcohol to someone who is visibly intoxicated can be held accountable.
• Read more about Indiana Code Section 7.1-5-10-15.5

• Iowa law: Can hold business owners accountable if their establishment sells alcohol to patrons who are visibly intoxicated.
• Read more about Iowa Code Section 123.92 and Section 123.49

• Kentucky law: Can hold businesses accountable for selling alcohol to someone who is already intoxicated.
• Read more about Kentucky Revised Statutes Section 413.241

• Louisiana law: If a business sells alcohol to a minor, it can be held liable for harm caused by the underage person.
• Read more about Louisiana Revised Statutes Section 9:2800.1

• Maine law: Can hold businesses accountable for serving alcohol to underage or visibly intoxicated individuals.
• Read more about Maine Revised Statutes Title 28-A Chapter 100 Section 2506 and Section 2507

• Massachusetts law: Liquor laws don't permit statutory action, but courts allow lawsuits against businesses and hosts in many situations.
• Read more about Massachusetts General Laws Chapter 138 Section 34 and Section 69 and Chapter 231 Section 60J

• Michigan law: Can hold businesses liable for selling alcohol to someone underage or visibly intoxicated.
• Read more about Michigan Compiled Laws Section 436.1701 and Section 436.1801

• Minnesota law: Can hold a business accountable for illegally selling alcohol to underage patrons.
• Read more about Minnesota Statutes Section 340A.801 and Section 340A.90

• Mississippi law: If a business illegally sells or serves alcohol to someone who is visibly intoxicated, the business owner can be held liable for any harm caused by the individual.
• Read more about Mississippi Code Section 67-3-73

• Missouri law: Can hold a business accountable for serving alcohol to a patron who’s visibly intoxicated or under the legal drinking age.
• Read more about Missouri Revised Statutes Section 537.053

• Montana law: Businesses that furnish alcohol to someone who is visibly intoxicated or underage can be held accountable for any harm caused by the patron.
• Read more about Montana Code Section 27-1-710

• New Hampshire law: Can hold establishments liable for negligently serving alcohol to someone who is underage or intoxicated, or for recklessly serving alcohol.
• Read more about Section 507-F:4 and Section 507-F:5

• New Jersey law: Can hold businesses accountable for serving alcohol to underage or visibly intoxicated individuals.
• Read more about New Jersey Revised Statutes Section 2A:22A-5 and Section 2A:15-5.6

• New Mexico law: Businesses that sell alcohol to someone underage or visibly intoxicated can be held liable for damages caused by the patron.
• Read more about New Mexico Statutes Section 41-11-1

• New York law: Should a business serve alcohol to a patron who is clearly intoxicated or underage, and that person causes an accident, the business owner can be held liable for contributing to the intoxication and resulting harm.
• Read more about New York General Obligations Law Section 11-100 and Section 11-101 and New York Alcoholic Beverage Control Law Section 65

• North Carolina law: If a business sells alcohol to someone underage, and that person causes a car accident, the business owner can be held liable for damages.
• Read more about North Carolina General Statutes Section 18B-121 and Section 18B-305

• North Dakota law: Businesses that sell alcohol to someone who is visibly intoxicated, underage, or incompetent can be held liable for any damages caused by the patron.
• Download PDF to read more about North Dakota Century Code Section 5-01-06.1 [PDF]

• Ohio law: Can hold a business liable for serving alcohol to someone who causes injuries or property damage away from the establishment’s premises.
• Read more about Ohio Revised Code Section 4399.18

• Oklahoma law: If a business knowingly sells, delivers, or furnishes alcohol to someone underage or incompetent, the business owner can be held accountable for any harm the person causes.
• Download PDF to read more about Oklahoma Statutes Section 37A-6-101 [PDF]

• Oregon law: Can hold a business liable for serving or providing alcohol to someone who is visibly intoxicated, or if they give alcohol to someone underage, and the plaintiff can prove that the business reasonably should have requested ID or noticed that the ID provided was not legitimate.
• Read more about Oregon Revised Statutes Sections 471.565 and 471.567

• Pennsylvania law: Can hold businesses accountable for selling or providing alcohol to underage or visibly intoxicated individuals.
• Download PDF to read more about 47 Pennsylvania Statutes Sections 4-497 and Section 4-493 [PDF]

• Rhode Island law: If a business is negligent or reckless in serving alcohol to people who are underage or visibly intoxicated, it can be held liable for damages caused by the individual.
• Read more about Rhode Island General Laws Chapter 3-14, including Section 3-14-6 and Section 3-14-7

• South Carolina law: Can hold businesses liable for selling alcohol to underage or visibly intoxicated individuals.
• Read more about South Carolina Code of Laws Sections 61-4-50 and 61-4-580

• Tennessee law: Can hold establishments accountable for selling alcohol to someone underage or visibly intoxicated.
• Download PDF to read more about Tennessee Code Sections 57-10-101 and 57-10-102 [PDF]

• Texas law: If a business serves or provides alcohol to someone who is visibly intoxicated or under the age of 18, the business owner can be held liable for any damage caused by the individual.
• Read more about Texas Alcoholic Beverage Code Section 2.02 and Texas Safe Harbor provision

• Utah law: Can hold businesses accountable for serving alcohol to underage or visibly intoxicated individuals.
• Read more about Utah Code Section 32B-15-201

• Vermont law: Can hold establishments liable for selling alcohol to underage or visibly intoxicated individuals.
• Read more about 7 Vermont Statutes Section 501

• Washington law: If a business sells alcohol to someone who is visibly under the influence or underage, it can be held liable for any damages caused by the individual.
• Read more about Revised Code of Washington Section 66.44.200 and Section 66.44.270

• Washington, D.C. law: Can hold establishments liable for selling or delivering alcohol to underage or visibly intoxicated individuals.
• Read more about District of Columbia Code Section 25-781

• Wisconsin law: Can hold a business accountable for selling, dispensing, or giving alcohol to someone underage.
• Read more about Wisconsin Statutes Section 125.035

• Wyoming law: Can hold businesses liable for illegally providing someone with alcohol.
• Download PDF to read more about Wyoming Statutes Section 12-8-301 [PDF]

Due to historical factors, judicial precedents, alternative laws, and a handful of other reasons, some states don’t have dram shop laws. These include:

• Delaware
• Kansas
• Louisiana
• Maryland
• Nebraska
• Nevada
• South Dakota
• Virginia

Even in states without dram shop laws, anyone can file a lawsuit and take you to court over the actions of an intoxicated customer. Though the judge may be more likely to rule in your favor, you’ll still have to pay for legal advice, court costs, and other fees related to the dram shop case. That’s why dram shop insurance offers important protection for any business involved in the sale of alcohol.

Get free quotes from top-rated insurance providers by filling out our easy online application. You can also speak with a licensed insurance agent, who can answer questions and help you find affordable coverage.

Once you find the right policies for your small business, you can begin coverage in less than 24 hours and get a certificate of insurance (COI) for your small business.