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If I contract out bar services, do I need liquor liability insurance for my catering business?

Because liquor liability laws vary significantly from state to state, this is a complicated question to answer. But to give you an idea about your catering business's liability, here are a few things to consider:

  • If your catering business has a liquor license, it's almost always a good idea to carry some form of Liquor Liability Insurance, as "dram shop" laws usually target license holders.
  • Even if your state's dram shop laws don't apply to your situation, "social host" regulations might hold you accountable for your subcontractors' actions.
  • Each state's liquor liability laws usually depend on the interpretation of a word like "provider" or "control" – malleable terms that may or may not apply to independently contracted liquor service.

Ultimately, whether Liquor Liability Insurance makes sense for your catering business depends on your business's particular circumstances and practices. Contact a food business insurance expert for advice specific to your business.

Still have questions? Fill out the Q&A form. We'll get back to you with an in-depth answer.

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