Liquor Liability Insurance


Every establishment that sells or serves liquor in Massachusetts is required by law to have Liquor Liability limits of $250,000/$500,000. The majority of big events, nightclubs, and restaurants serve alcoholic beverages on a regular basis. They are held legally responsible if a customer becomes intoxicated and negligent behavior occurs.

Some people don’t realize that liquor liability does not necessarily end when a person leaves the establishment where they consumed their alcohol. For example, a bar can be held liable if someone gets into an accident after they leave – especially if the outcome is severe or fatal. In Massachusetts, liquor liability insurance exists is to protect businesses from these kinds of situations.

Managing risk is important and there are several important ways for you to minimize the potential for a Liquor Liability loss. Some of these include:

  • Require employees to attend safe alcohol serving courses
    • Use measured shots rather than free pouring
  • Educate employees on ways to deal with different types of intoxicated customers
  • Know your state liquor laws
  • Enforce age laws by checking ID’s
  • Post prominent taxi and ride service info for customers

Along with serving alcohol and handling intoxicated customers or employees, there are several other possible issues that could arise. For example, a fight may occur if someone is feeling particularly aggressive due to their excessive alcohol intake. Many people think that you don’t need liquor liability insurance at events, such as a wedding – when, in reality, it is essential to have for events such as those.

It is important to know that Massachusetts liquor liability policies will typically exclude situations such as the following:

  • Situations where the alcohol was served illegally – i.e. an accident that was the result of an underage person who was sold alcohol at an establishment.
  • Psychological or mental issues that occur as a result of a claim that is covered

If your business sells or serves alcohol in any way, liquor liability insurance is extremely important for you. Call Cochrane & Porter today at 781-943-1555 and we can help decide if liquor liability is needed for your specific situation.