Small businesses pay about $55 per month for liquor liability insurance (sometimes called dram shop insurance). Several factors influence the cost of a liquor liability policy, including your type of business, the extent of coverage, your alcohol sales, and where your business is located.
Insureon customers pay an average premium of $55 per month, or about $659 annually, for liquor liability insurance, regardless of policy limits.
Our figures are sourced from the median cost of policies purchased by Insureon customers. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.
While Insureon's small business customers pay an average of $55 monthly for liquor liability coverage, 44% pay less than $50 and 23% pay between $100 and $300 per month.
The cost varies for small businesses depending on their risks and the coverage they choose.
Your coverage limits influence how much you’ll pay for liquor liability insurance. Higher limits cost more, but also provide more coverage.
For Insureon customers, the average limits for liquor liability insurance are $2 million for bars and $1 million for restaurants.
Liquor liability insurance covers legal fees, settlements and medical expenses, up to the policy limit, if alcohol is sold to an intoxicated individual who then causes harm or damages property. This policy is often required for any small business that serves alcohol, such as liquor stores or taverns, in order to obtain a liquor license.
To protect your small business from all risks, you should consider purchasing additional liability coverages, such as a general liability policy for financial protection against third-party bodily injuries and property damage.
View our recommended policies for food and beverage businesses.
Your policy limit is just one factor mentioned that will impact the cost of your liquor liability insurance policy.
Your insurance provider will also look at a number of other factors when calculating your premium, such as your deductible, alcohol sales, and location.
The deductible you choose impacts the cost of your liquor liability coverage. The higher your deductible is, the less expensive your premium will be.
Selecting a more costly deductible is an easy way to save on your premium, but be sure to choose one that you can still afford. If you can’t pay your deducible, you can’t collect on a claim.
The cost of liquor liability insurance is influenced by what percentage of your sales are made from alcohol. The cost goes up for businesses with a higher percentage of alcohol sales.
This often means bars pay more for liquor liability insurance than restaurants, grocery stores, and other businesses that sell food and other items as well.
Some states set requirements for policy limits. Depending on which state you live in, you may have to purchase a policy with a minimum coverage limit.
For example, businesses in South Carolina that serve alcohol after 5 p.m. are required to carry a minimum of $1 million in liquor liability insurance.
Insurance companies will consider your claims history to determine how risky you are to insure. Companies that have made past liquor liability claims will pay more for insurance than those with a clean history.
Here are three steps you can take to reduce the cost of your liquor liability insurance coverage.
Businesses can sometimes find discounts when they purchase multiple insurance policies from the same provider. For example, if you own a small, low-risk business, you may qualify for a business owner’s policy (BOP).
A BOP bundles general liability insurance and commercial property insurance together at a reduced rate – and you can add liquor liability insurance as an endorsement. If you don’t qualify for a BOP, then you can add liquor liability as an endorsement to your commercial general liability policy.
Your liquor liability policy premium can typically be paid in monthly or annual installments. It might be tempting to go with a smaller monthly payment, but consider paying the full premium. Many insurers offer discounts on the full annual premium.
If your small business has a clean claims history, expect to pay lower insurance rates. An effective way to do this is to create a comprehensive risk management plan.
For example, you might:
Getting insurance for your small business can get expensive. At Insureon, we help you find affordable insurance that meets the unique needs of your small business, through a single online application. That way you can get peace of mind without breaking the bank.
Insureon is the #1 independent marketplace for online delivery of small business insurance. We help business owners compare coverage options from top-rated providers, buy policies, and manage their different types of policies online.
By completing Insureon’s easy online application today, you can compare free quotes for liquor liability insurance and other types of insurance from top-rated U.S. carriers. Insureon insurance agents are available to help answer any questions related to your insurance needs.
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 for your small business.
Insurance premiums vary based on the policies a business buys. See our small business insurance cost overview or explore costs for a specific type of policy.