If a patron you served is over-served and causes a crash or injures someone after leaving, liquor liability, not your general liability policy, is what responds to that claim. It is written as its own coverage because most general liability forms carry a specific alcohol exclusion. How much coverage you need is not a flat number: it scales with how much of your revenue comes from alcohol and how late into the night you serve it, so two restaurants with the same total sales can need very different limits.
Does Georgia require it?
Georgia's dram shop statute, O.C.G.A. 51-1-40, holds a business that sells or serves alcohol legally responsible for a resulting injury only in narrow circumstances: serving someone who is not of legal drinking age, or serving someone who is noticeably intoxicated, when the business knows that person will soon be driving. That statute creates the liability exposure. It does not, by itself, require a Georgia business to carry liquor liability insurance. In practice, most commercial landlords, lenders, and local alcohol-license processes require proof of liquor liability coverage before a restaurant can pour a drink on the premises, and exact requirements vary by lease, lender, and county. A licensed advisor can confirm what applies to your specific location.
Source: Official Code of Georgia Annotated, O.C.G.A. 51-1-40, "Liability for acts of intoxicated persons."
What does it cost?
Liquor liability premiums scale with alcohol sales as a share of total revenue, hours of operation, and claims history, not with the restaurant's total revenue alone. A neighborhood restaurant that serves wine with dinner service typically pays less than a late-night bar with the same total revenue, because the exposure (hours of service, volume poured, and time of day) is different.
What is excluded?
Assault and battery in most base forms
A fight that breaks out on the premises is often excluded from a base liquor liability form unless assault-and-battery coverage is added back in, which is common for late-hours venues.
Off-premises events without an endorsement
Catering an off-site wedding or private event where alcohol is served may fall outside your standard policy unless it is specifically endorsed to cover off-premises service.
Serving a minor or an already-intoxicated guest
Coverage does not erase the legal exposure of over-serving; carriers still expect staff to follow responsible-service practices, and a pattern of violations can affect renewal or claims handling.
Common Questions
No. General liability covers everyday premises risks like a customer slipping on a wet floor. Liquor liability specifically covers claims tied to serving alcohol, such as a guest causing a crash after leaving. Most general liability policies exclude alcohol-related claims entirely, which is why liquor liability is written as its own coverage.
Yes. Liquor liability applies to any alcohol service, beer and wine included, not just spirits. The coverage responds to the act of serving alcohol to a guest who then causes harm, regardless of what type of alcohol was served.
Cost depends mainly on how much of your revenue comes from alcohol, your hours of operation, and your claims history, not your total restaurant revenue alone. A licensed advisor can get you an actual quote based on your specific operation.