Liquor Liability Insurance in Illinois

Learn more about our liquor liability coverages and get a quote from one of our knowledgeable independent agents. Providing coverage to residents across Illinois, Arizona, Florida, Indiana, Louisiana, Michigan, Montana, Nevada, New Hampshire, Ohio, Tennessee, Texas, Washington, and Wisconsin.

What is liquor liability insurance? 

Illinois businesses engaged in selling or serving alcohol are normally required to have insurance against incidents that intoxicated customers could be involved in. This is what liquor liability insurance is for.

Liquor liability insurance is specialized liability protection for situations involving over-served customers. Policies may cover injuries, assaults and more.

Which businesses in Illinois should have dram shop liability insurance? 

The Illinois Liquor Control Commission refers to liquor liability as “dram shop liability insurance.” The coverage is generally required as part of a liquor license application.

Specifically, the state required $266,814.76 in dram shop liability coverage for 2023. The maximum award for related lawsuits was $101,205.60 for most of 2023. These numbers are based on the state’s Liquor Control Act of 1934, but get adjusted annually.

In some cases, businesses might want more than the minimum required coverage. Insurance usually covers legal fees in addition to judgments, and those combined would almost certainly exceed the maximum awarded amount if there’s a major lawsuit.

Additionally, a major incident could involve multiple suits. For example, consider a fight that broke out between two customers. Either might try to sue for injuries sustained, as might any bystander who was hurt unintentionally. It’s possible that even others in the room who weren’t physically injured could sue for emotional harm.

An insurance agent specializing in liquor liability can help businesses determine how much coverage they should carry.

What incidents are covered under dram shop liability insurance? 

Coverage specifics depend on a chosen policy’s terms and exclusions, but most policies cover a variety of incidents. A policy might protect against incidents if an intoxicated customer:

• Is injured in a “slip and fall” or similar accident
• Sexually assaults another customer or someone else
• Fights or otherwise physically assault others
• Causes a DUI accident after leaving
• Is hospitalized for alcohol poisoning

Even if the customer should be personally responsible for their actions, the business could be sued on the grounds that it contributed by over-serving the customer. It’s common for businesses to be sued in these situations, as businesses often have more insurance and assets than individuals.

Do businesses need dram shop insurance if they have general liability insurance?

General liability insurance is normally good at covering general risks that almost all businesses face. It usually doesn’t cover more industry-specific risks, such as those that come with serving alcohol. 

Most businesses that sell or serve alcohol need dram shop liability insurance in addition to general liability insurance. The two can usually be bundled together in a package policy.

Is liquor liability coverage available for short-term events?

Liquor liability coverage is readily available for short-term events. It can be purchased on its own, or as part of a broader event policy. This is something that a knowledgeable agent can assist with.

Does liquor liability cover underage customers?

Liquor liability coverage generally doesn’t cover situations where a business serves underage customers. If a business knowingly serves underaged people, or if the business doesn’t have adequate checks in place, claims involving underage drinkers are unlikely to be covered. 

Insurance isn’t an excuse for serving people below the legal drinking age.

How much does liquor liability coverage cost? 

Liquor liability premiums vary, being influenced by factors like the business’s annual sales, beverages sold, and prior claims history. 

Independent insurance agents can provide personalized quotes from several insurance companies. This makes it easy to find out how much different insurers will charge a particular business for coverage.

How can Illinois businesses get liquor liability insurance? 

For help finding liquor liability insurance in Illinois, contact the independent insurance agents at Gee-Schussler Insurance. We’ll make sure your business finds solid protection against alcohol-related incidents.