Does Alabama require liquor liability insurance?

Yes, for retail alcohol licensees. The Alabama Alcoholic Beverage Control Board requires every retail licensee to maintain at least $100,000 per occurrence in liquor liability insurance at all times, and to provide a certificate of that insurance before a license is issued or renewed, under ABC Board Rule 20-X-5-.14. That is a real insurance-purchase mandate — unlike most states, where liquor liability is voluntary risk management responding to dram shop exposure alone. Alabama’s separate dram shop act (Code of Alabama Sec. 6-5-71) creates the underlying liability the insurance responds to; the ABC Board rule is what makes carrying the coverage a licensing condition.