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Home > Products and Applications > Liquor Liability Insurance > Dram Shop Liability
Adco General provides liquor liability insurance policies to cover dram shop liability for those serving beer, wine, hard liquor and other alcoholic beverages. Dram shop liability statues codify each states legal posture regarding vendor or social host liability for serving or selling alcohol to intoxicated adults or minors. State requirements vary.
The dram shop liability laws were spawned by the temperance movement which began in the mid-1800’s. The first state to pass a dram shop law was Illinois. In the 2000’s, Forty states have dram shop liability laws. These laws define the civil liability of people and businesses selling or providing alcoholic beverages for damages that those they sell to cause because they are intoxicated.
Dram shop liability laws cause the person who profits from providing alcohol to be liable for the actions of those they sell or provide it to. Typical scenarios include damages resulting from drunk driving and assault and battery. To be liable, the alcohol provider simply must be shown to have provided alcohol to someone who was already drunk or to a minor.
The dram shop liability laws and the associated court rulings have resulted in a huge increase in the number and cost of lawsuits surrounding liquor liability. Liquor liability insurance, therefore, has become more and more expensive and hard to get. Informed alcohol providers have taken steps to reduce these costs. Actions include reducing “happy hours”, closing earlier, providing free breath tests for blood alcohol levels, designated driver policies and training to wait staff on how to manage people who have a too much to drink. Some insurance companies offer discounts for taking preventative measures.
Eleven states have dram shop liability statutes that hold social hosts, either corporate or individuals, liable for serving alcohol to intoxicated guests, with or without charge. These states include Georgia, Idaho, Indiana, Maine, New Hampshire, New Jersey, New Mexico, North and South Carolina, Oregon and Vermont. People or firms serving alcohol at social or business functions, therefore, should look to taking the same steps that sellers do to limit liability. These steps should include getting liquor liability insurance and carefully managing their guests.
Insurance covering dram shop liability covering liquor liability is needed to prevent worst case scenarios which can, in the most severe cases, close businesses. Please contact ADCO General with questions or concerns about dram shop liability.
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Dram Shop Liability Insurance for Businesses Serving Liquor
Adco General provides liquor liability insurance policies to cover dram shop liability for those serving beer, wine, hard liquor and other alcoholic beverages. Dram shop liability statues codify each states legal posture regarding vendor or social host liability for serving or selling alcohol to intoxicated adults or minors. State requirements vary.
State dram shop liability laws may limit awards, define the type of liability and set a statute of limitations. The following states do not have Dram Shop Acts: Delaware, Hawaii, Kansas, Maryland, Nebraska, Oklahoma, South Carolina, Virginia, Washington, and West Virginia. Some states without dram shop liability laws still hold vendors liable for damages for sale or serving alcohol to minors. These states include Hawaii, Oklahoma, South Carolina, Washington and Virginia.
The dram shop liability laws were spawned by the temperance movement which began in the mid-1800’s. The first state to pass a dram shop law was Illinois. In the 2000’s, Forty states have dram shop liability laws. These laws define the civil liability of people and businesses selling or providing alcoholic beverages for damages that those they sell to cause because they are intoxicated.
Dram shop liability laws cause the person who profits from providing alcohol to be liable for the actions of those they sell or provide it to. Typical scenarios include damages resulting from drunk driving and assault and battery. To be liable, the alcohol provider simply must be shown to have provided alcohol to someone who was already drunk or to a minor.
The dram shop liability laws and the associated court rulings have resulted in a huge increase in the number and cost of lawsuits surrounding liquor liability. Liquor liability insurance, therefore, has become more and more expensive and hard to get. Informed alcohol providers have taken steps to reduce these costs. Actions include reducing “happy hours”, closing earlier, providing free breath tests for blood alcohol levels, designated driver policies and training to wait staff on how to manage people who have a too much to drink. Some insurance companies offer discounts for taking preventative measures.
Eleven states have dram shop liability statutes that hold social hosts, either corporate or individuals, liable for serving alcohol to intoxicated guests, with or without charge. These states include Georgia, Idaho, Indiana, Maine, New Hampshire, New Jersey, New Mexico, North and South Carolina, Oregon and Vermont. People or firms serving alcohol at social or business functions, therefore, should look to taking the same steps that sellers do to limit liability. These steps should include getting liquor liability insurance and carefully managing their guests.
Insurance covering dram shop liability covering liquor liability is needed to prevent worst case scenarios which can, in the most severe cases, close businesses. Please contact ADCO General with questions or concerns about dram shop liability.
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