6 Best Liquor Liability Insurance Companies 2024
Small business owners manufacturing, selling, or serving alcohol need liquor liability insurance. We researched over 20 insurers using our evaluation system, focusing on industries covered, risk management services, financial stability, policies offered, customer service, and convenience to find the best liquor liability insurance companies.
- The Hartford: Best liquor liability insurance provider
- Next Insurance: Best for restaurants
- FLIP: Best for food trucks and caterers
- Thimble: Best for special events
- Hiscox: Best for bodegas and mini-marts
- Tivly: Best for bars
Top Liquor Liability Insurers Compared
The Hartford: Best Liquor Liability Insurance Provider
Pros
- It has 24/7 claims services.
- It offers online quoting and binding.
- Its customer complaints are below the national average.
- It is available in all 50 states and Washington, D.C.
Cons
- You may be unable to purchase a policy online.
- It has low-risk appetite for bars and nightclubs.
- It has no app to manage the policy or claims.
Standout Features
- Handles claims directly rather than with third-party vendor contracts
- Offers access to important policy documents instantly through your online portal
- Is a preferred provider for independent agents who can advise you on your policy
- Has over 200 years of experience covering losses
Financial Stability: It is important to know that your carrier is financially stable, and The Hartford has maintained a solid financial position for many years. The Hartford’s AM Best rating is an A+ (Superior).
The Hartford scored best overall at 4.43 out of 5 for liquor liability insurance due to excellent customer service, convenience with quoting and binding, financial rating, and years of experience. It also tops our list of the best small business insurance companies. It has a broad appetite and the support system of an established legacy carrier (which it is) but has implemented a number of digital features, making it as convenient as many newer carriers.
We received a quote for a general liability policy for a restaurant with liquor liability included, which costs $153 monthly. The policy carried limits of $2 million aggregate.
Regarding policies available, The Hartford offers a liquor liability policy available as a standalone policy or as an endorsement of an existing general liability insurance policy. If you are a business that occasionally hosts events, The Hartford includes host liquor liability coverage in its general liability policy. It also offers multiple policies for small business needs, including workers’ compensation insurance and a business owner’s policy (BOP).
For those looking to save money, The Hartford offers several ways to do so. It will let you pay your entire premium upfront at a reduced rate. If that isn’t feasible for your business, it also offers premium discounts if your employees participate and complete alcohol service training.
The Hartford currently insures over 1 million small businesses. While being an established carrier is not always to the policyholder’s benefit, in this case, it has created a wide range of services to your advantage, including the ability to request a certificate of insurance (COI) through your online account.
Its customer service and convenience are top-notch as well. From 24/7 availability to a lower-than-average complaint level with the National Association of Insurance Commissioners (NAIC), The Hartford is focused on providing excellent service to the policyholder.
Next Insurance: Best for Restaurants
Pros
- Over 10,000 restaurants are insured.
- You can manage your policy online or via app.
- It is targeted towards small and newer restaurants.
Cons
- The revenue cap is $5 million.
- It has no appetite for caterers that make over 30% from alcohol sales.
- Liquor liability is not offered in Alaska, Alabama, Vermont, and Washington, D.C.
Standout Features
- Lets you create and share instant proof of insurance
- Is a dedicated small business insurer
- Automatically includes liquor liability with general liability for businesses that serve alcohol
- Has an app to manage your policy, claims, and premium
Financial Stability: Next Insurance, while a newer company, is financially stable. AM Best rated Next Insurance an A- (Excellent).
Next Insurance is the best option for restaurants looking for liquor liability insurance because it automatically includes liquor liability with general liability for any business that needs this coverage. Additionally, the insurer is widely available, offers convenience with its policy management system, and, overall, is an affordable provider for insurance. It is also our top-recommended restaurant insurance company, so it is a natural fit for this category.
For restaurant insurance or liquor liability, you can get a quote online and purchase the policy online. However, to do so, you will need a liquor license and be able to provide the license information. We were unable to obtain a quote for the purposes of this article, though Next Insurance states that policies that include liquor liability start at $150 annually.
In terms of coverage, the provider offers a range of insurance that any type of restaurant, bar, or retail store would need. You can save 10% if you go with a BOP and bundle general liability with property. It also offers workers’ compensation.
Customers are happy with their experience as a policyholder. Whether it is by tracking complaints nationwide through the NAIC or reading customer reviews on its website,[1] complaints are lower than expected, and praise is high.
As a digital insurtech company, a benefit of using Next Insurance is convenience. While it does not offer any type of 24/7 call center, its app functions like one. Whether you use Android or iOS, you can manage your policy, file and track claims, create and share a COI, and pay your policy all through the app.
FLIP: Best for Food Trucks & Caterers
Pros
- It offers instant quoting and binding.
- It offers instant COI.
- It offers same-day coverage for events.
Cons
- Liquor liability is unavailable in several states.
- It does not handle claims directly.
- Coverages are limited to the preset program.
Standout Features
- Enables you to purchase insurance and be covered instantly
- Designs insurance with food vendors in mind
- Offers access to policy documents 24/7
- Lets you add additional insureds at no extra cost
Financial Stability: Food Liability Insurance Program (FLIP) works with The Great American Insurance Group (GAIG) to underwrite and provide services for its policies. This partnership brings strong financial stability to FLIP because GAIG’s AM Best rating is A+ (Superior).
FLIP is a great option for food trucks and caterers that serve alcohol. Because its insurance program is specifically designed for those industries and offers liquor liability as an add-on or even as a separate event policy similar to a special event. Its high score reflects its convenience, affordability, and good customer satisfaction.
It is a great option for food vendor insurance, including for food trucks. However, if your business is a brick-and-mortar operation with employees, then you may want to look into a provider with a greater range of insurance options like Next Insurance or The Hartford.
FLIP has several options for liquor liability. The first is the gold option, which starts at $200 annually. This is a standalone liquor liability policy with $1 million per occurrence and $2 million aggregate limits.
The second is its platinum option, which costs $429 annually and includes general liability and liquor liability, and both have separate limits of $1 million per occurrence and $2 million aggregate. Optional coverages like assault and battery or inland marine are available.
Coverage can be purchased online in about 10 minutes.
What sets FLIP apart is its ability to provide quick insurance to businesses in the food sector. You can build your coverage and purchase your policy entirely online, or if you have questions, you can call and speak with a non-commissioned agent. The policies are very affordable, especially for $2 million in liquor liability insurance.
FLIP offers an excellent user interface for a quick quote and insurance for various industries: restaurants, caterers, bakeries, food trucks, and concessions. Just to name a few. FLIP makes COI and other relevant policy documents instantly available to customers.
Thimble: Best for Special Events
Pros
- It offers short-term liquor liability.
- It offers fast, affordable insurance.
- It is partnered with multiple carriers.
Cons
- It does not directly handle claims.
- It has no 24/7 call center.
- Reaching a person on the phone can be difficult.
Standout Features
- Offers a simple, easy-to-use system
- Lets you get a quote and purchase a policy online or through the app
- Has a commercial app to manage your policy, claims, and customer service issues
- Provides short-term coverage by hour, day, or month
Financial Stability: As a managing general agent (MGA), Thimble works with over a dozen carriers with ratings that range from A- to A (Excellent).
Thimble is a newer company that specializes in small business insurance for microbusinesses and solopreneurs. One of its unique offerings is short-term liability and event insurance, which can be purchased the same day for hourly, daily, or monthly coverage. This includes liquor liability for special events, making it a great option for event spaces looking to host an event or restaurants that host pop-up events.
The provider is still in a growing phase, and when it comes to the value of speaking to a person, it is a bit of a miss. In our research, we’ve found it is nearly impossible to speak to anyone. If you want to call and speak with someone, no matter the day or time, then you’ll want to consider a carrier like The Hartford, which is the only insurer listed in our guide that maintains a 24/7 call center.
For this article, we received a quote for an outdoor festival with an anticipated attendance of 150 people and where alcohol would be served. The policy was for general liability and liquor liability, with a total combined limit of $1 million. It costs $481.35.
For your business, Thimble can be more than a provider for special event coverage but also for commercial property, general liability, and workers’ comp. All coverages are available online.
Thimble is available nationwide, though some coverage availability may change. Like FLIP, it doesn’t handle claims directly. However, through the app, it gives you control over your policy, filing and tracking claims, and even adding coverage. If you have the Thimble app—even if you aren’t a customer and decide to host a special event—you can get a quote and purchase a policy through it.
While it is a newer company, it is growing, and the customers are happy with it. It has over 1,400 reviews on Trustpilot[2] with 4.5 out of 5 stars.
Hiscox: Best for Bodegas & Mini-marts
Pros
- You can get a quote and purchase a policy online.
- It has great cybersecurity resources.
- It provides small business support services.
Cons
- It has no 24/7 call center.
- Complaints are slightly higher than the national average.
- Sometimes, you’ll have to call to finish a quote.
Standout Features
- Is a dedicated small business insurer with decades of experience
- Has an appetite for grocery stores, bodegas, and retail stores with food and drinks
- Offers liquor liability up to the full general liability limits
- Provides aggregate limits up to $5 million for most classes of business
Financial Stability: Hiscox’s AM Best rating is A (Excellent).
Dedicated small business insurer Hiscox is a great option for businesses that run mini-marts, bodegas, and small grocery stores that carry alcohol. For those businesses, liquor liability is included with general liability, and coverage limits are available up to the full limits of the general liability policy.
While we tried several times, we were unable to get a quote for this article. However, in prior research, Hiscox typically generates quotes online for same-day coverage fairly quickly, and then you can purchase the policy online or call to finish it. It is important to remember that this type of coverage is considered high-risk and oftentimes prefers to take the quoting offline and work directly with the potential customer over the phone.
Hiscox’s liquor liability is available for businesses that serve alcohol. The provider also has all of the other core policies a small business needs, including property and cyber security insurance.
Beyond its convenient system for purchasing same-day insurance online, Hiscox puts a lot of control into the hands of its customers for managing their policies and claims, and creating proof of insurance.
When looking at customer satisfaction, it is a mixed bag but is trending in the right direction. Complaints tracked by the NAIC are 0.89, which is lower than the national average. But looking at specific coverages, like liability, complaints are higher than the national average. Going deeper into past years, complaints are decreasing. This matches with reviews on its website[3] from customers, where it has a score of 4.7 out of 5 from over 1,000 reviews.
Tivly: Best for Bars
Pros
- It has no state limitations on coverage.
- General liability and workers’ comp are available.
- You can initiate a quote online quickly.
Cons
- You can only start a quote process online.
- As a marketplace, Tivly doesn’t handle claims.
- Account maintenance and services depend on the provider.
Standout Features
- Is a great option for high-risk businesses like bars and taverns
- Is able to help high-risk industries find coverage by working with over 200 different providers, MGAs, and agencies
- Sells the key policies for business insurance, including workers’ compensation and commercial auto insurance, in addition to liquor liability
Financial Stability: Tivly works with top-rated carriers, like Liberty Mutual and The Hartford. Liberty Mutual’s AM Best rating is A (Excellent), whereas The Hartford’s AM Best rating is A+ (Superior).
Tivly is a marketplace for business insurance. It connects a business, like a bar or a tavern, with an insurer that is willing and capable of providing liquor liability insurance or any other type of insurance the business may be looking for. Because of its extensive network of over 200 different providers, Tivly is a great option for businesses like bars whose primary source of revenue is the sale of alcohol.
Many different insurance companies, including ones you’ll find on other sites, will not insure a business that serves alcohol with live music or has more than 50% of revenue from alcohol. But a two-sided marketplace like Tivly will work with you to help you find coverage.
It should be noted that Tivly is a marketplace, not a broker or provider. It doesn’t handle claims directly, so if that is important to you, consider The Hartford or Next Insurance as alternatives.
The quote process with Tivly is straightforward and fast. Simply enter three points of information: your ZIP code, name, and phone number. Within minutes, a representative from Tivly will contact you to finish the quote.
We did not get a quote for this article. However, Tivly states that some providers’ premiums start at $39 a month for general liability insurance.
If you’re looking to find insurance for a difficult industry, Tivly is a convenient option and a great place to start. However, if you’re looking for a way to get insurance online, manage your policy online, or have a 24/7 call center, Tivly does not offer any of that.
It is available during much of the week. Its hours are Monday through Saturday from 8 a.m. to 8 p.m.
How We Evaluated the Best Liquor Liability Insurance Companies
When determining which of the top liquor liability insurance companies would be the best for your small business needs, we utilized a proprietary evaluation system developed in-house. We reviewed over 20 insurers and presented the six with the highest scores.
In evaluating the companies that provide the best liquor liability insurance, we focus on the customers’ needs. We paid particular interest to convenience, financial ratings (AM Best), customer service, types of policies offered, and the overall experience as a policyholder with a specific provider.
Frequently Asked Questions (FAQs)
Liquor liability is a special form of liability insurance for businesses that manufacture, distribute, serve, or sell alcohol. Most states have dram shop laws that guide the liability of businesses involved in alcohol service.
Yes, as general liability has alcohol exclusions written into the policy. If your business is involved in serving, distributing, or manufacturing alcohol, you will need to get a liquor liability policy.
Liquor liability can be costly. For a small bar, a policy can cost over $2,000 annually. Managing risk to help prevent claims and not having alcohol be the main source of income for your business can help reduce the premium.
Host liquor liability insurance is for businesses that serve or sell alcohol but do not manufacture or serve it regularly. Think of a business hosting a Christmas party with alcohol available: this is a situation where host liquor liability insurance should be considered.
Bottom Line
Businesses that sell or serve alcohol need liquor liability insurance. We understand how important it is for you to have the best coverage for your business, which is why we have done the work of researching the best liquor liability providers. If you don’t have liquor liability and something goes wrong, you’re going to wish you’d bought dram shop insurance to protect your business. The Hartford is our best overall provider for liquor liability insurance.
Visit The Hartford for a Quote
User review references:
[1]Next Insurance customer reviews
[2]Trustpilot | Thimble
[3]Hiscox business insurance reviews
