4 Ways to Help Clients Secure Liquor Liability Coverage

• By: Olivia Overman
• August 10, 2026

While hospitality accounts covering bars, restaurants and nightclubs can be an excellent source of business for independent agents, they can also bring a distinct set of coverage considerations and challenges. For many agents, liquor liability coverage can be difficult to place, particularly if the account is considered a high-hazard operation, if there is a loss history, or if there is little to no prior insurance coverage.

Independent agents can play an important role and add value by combining their industry expertise with their personalized knowledge of their clients to help secure the right coverage for clients.

Here are four ways agents can assist clients looking for liquor liability coverage:

1) Know your client. “The best way to navigate the market is to differentiate your customer from their peers,” says Joey Shapiro, executive vice president and casualty broker, Amwins. “Dig into their risk management practices and encourage insureds to implement policies and procedures that go above and beyond that of the typical operator.”

“Some of these include expanding video surveillance and video retention, implementing wristbands for underage patrons, utilizing risk transfer for security operations, tracking employees’ certifications, and more,” Shapiro says.

Instituting such procedures can help support confidence in underwriting, including renewal.

2) Understand the coverage. Placing liquor liability coverage for restaurants and bars can be difficult, but agents who have a core understanding of the coverage and policy options available for clients can provide valuable guidance.

Identifying the important fact that a commercial general liability (GL) policy typically excludes alcohol-related claims when the insured is in the business of serving or selling alcohol is key. That means a bar, nightclub or restaurant with alcohol sales cannot rely solely on a standard GL policy, according to “Hospitality & Liquor Liability: Protecting the Nightlife Economy.”

While liquor liability claims may be infrequent, the potential liability can be huge. As a result, clear communication with clients can help them make informed decisions and reduce the chances of unwanted surprises if a claim occurs.

3) Optimize available resources. “Utilize an expert when navigating the wholesale marketplace,” Shapiro says. “It’s important to be working with brokers who understand the liquor laws by state, have relationships with key markets in the space and know the coverage needed to properly protect your clients’ assets.”

Additionally, because the liquor liability market is largely driven by excess and surplus (E&S) carriers, “find a wholesaler that you work well with and lean into them for their expertise and knowledge of the marketplace,” Shapiro says.

Further, agents should “educate themselves on the liquor liability laws affecting the venues they are calling on and the best practices that they can share with prospective clients.”

As dram shop laws across the U.S. become tougher and more widely enforced, agents can differentiate themselves, alongside their wholesale partners, as trusted advisors, adding significant value by helping clients understand both their liquor liability exposures and the coverage solutions available to them.

4) Identify strategies. Jury awards for alcohol‑related incidents are increasing, driven by both economic inflation and a surge in drunk driving lawsuits, according to Amwins “State of the Market 2026: A Focus on Hospitality,” report. The resultant impact is that many business owners face unsustainable premium increases that threaten profitability. Notably, several common “go-to” carriers for other lines won’t consider liquor liability, and the one or two remaining have tightened their underwriting guidelines to be even stricter, the report said.

Agents can help identify in which areas premiums have skyrocketed and where carriers have exited the market, causing rates to be pushed upward, according to IMA.

In addition, regular policy reviews ensure coverage keeps pace with business changes and any industry developments, such as tort reform.

Nevertheless, some agents are looking to focus on other lines of business, making it more difficult for businesses seeking coverage. “At this point with the current market conditions, I think our time is better spent in other classes like contractors, products, apartments and hotels,” says Lowell Bassett, executive underwriter at Admiral Insurance Group.

Olivia Overman is IA content editor.