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How liquor store insurance and other coverages protect your business

January 21, 2026 | Insurance 101

This article was originally published October 13, 2023

If you own or operate a liquor store, you know there are many challenges, from staying on top of consumer buying trends to hitting your sales targets. Then, of course, you have various business risks to contend with. Unexpected incidents are why you need liquor store insurance from biBerk. Fortunately, it’s easy to protect your liquor store with the right coverage.

That’s good news, because all it takes is one customer slip-and-fall accident and a subsequent lawsuit to create the potential for a large legal expense—which could be addressed by liquor store insurance. Or your store might suffer property damage from a storm or burglary. And maybe you own or lease a vehicle for making deliveries and picking up supplies, and an employee is at fault in an accident while driving it.

If you’re hit with a lawsuit or suffer a loss, payment has to come from somewhere. Without liquor store insurance, you may be required to cover costs from your store’s revenues or savings. If you can’t cover a liability judgment, for example, you might face severe financial trouble or even bankruptcy.

Liquor store insurance coverage helps you avoid that worst-case scenario and operate your business without worrying about liability issues, property damage, etc. In short, reliable liquor insurance allows you to focus on growth.

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Do you need liquor liability insurance for liquor stores? 

The term “liquor store insurance” (or “alcohol insurance”) is used broadly to refer to coverage for many types of individuals and businesses involved in producing, handling, or selling alcoholic beverages to consumers. That includes:

  • Independent liquor store owners
  • Liquor store franchise owners
  • Beer distributors
  • Wine stores
  • Distillery owners
  • Specialty wine shop owners
  • Beer stores
  • Liquor handlers/inventory specialists
  • Spirits stores
  • Dram shop owners

Building a strong financial foundation is the first step for any new liquor business. Securing the right insurance immediately helps you navigate requirements with confidence, even if you are new to the industry. It allows you to avoid the costly consequences of honest mistakes and gaps in protection. Additionally, having comprehensive coverage signals professionalism and credibility to suppliers, landlords, and customers from day one.

Common risks liquor stores face

Every time you unlock the front door, you face potential liabilities ranging from a customer tripping over a display to a cooler malfunction spoiling thousands of dollars in stock. You also have to manage the serious responsibility of selling age-restricted products, where a mistake by a clerk could lead to a major lawsuit.

Beyond that, delivery drivers face road risks, and your digital point-of-sale systems could be targets for cybercriminals. That’s why insurance for liquor stores is essential.

For independent store owners, insurance is the safeguard that keeps your doors open when the unexpected happens. It demonstrates your commitment to the community by showing you take safety and alcohol-related risks seriously. Plus, understanding your coverage—from property protection to liability—doesn't have to be complex. With the right policy, you can avoid long shutdowns and inventory losses, ensuring your business is always ready for what’s next.

6 liquor store insurance policies you should consider

Liquor store insurance is a type of business insurance. Companies provide it as separate policies that cover different risks. That approach benefits your business in a few ways. First, it gives you flexibility as you develop your business insurance portfolio. You can pick and choose the policies that make sense for your operations.

Second, it saves you money. For example, if your liquor store doesn’t own or lease any vehicles, you don’t need to buy commercial auto insurance. And while small business insurance tends to be very affordable, every dollar you save by not maintaining unneeded policies goes right to your bottom line.

So, what types of liquor store insurance do you need? That depends on many factors, including the risks you face, your business location, any regulatory requirements, etc. However, every establishment can benefit from one or more of these types of business insurance for alcohol retailers:

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    General Liability Insurance. “GL” insurance is designed for several risks, including injuries to clients and other non-employees and damage to other people's property you or your employees cause. It can also pay costs related to libel, slander, and copyright infringement, such as in your advertisements. To fine-tune your coverage, you can add endorsements like liquor liability, cyber, hired and non-owned auto liability, employment-related practices liability, and employee benefits liability. 
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    Business Owners Policy. Also called property & liability insurance, a business owners policy (BOP) combines general liability insurance with protection for the property you own or lease for your liquor store. It can also pay for lost income due to a covered event. As with a general liability policy, you can tailor your BOP with add-ons, including liquor liability, cyber, hired and non-owned auto liability, employment-related practices liability, and employee benefits liability. 
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    Workers' Compensation Insurance. Most states require this coverage for any company with employees. Workers' comp helps protect your business if a worker is injured, contracts an illness, or dies due to an incident on the job. It can cover medical costs, legal fees, and lost wages due to the injury.
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    Commercial Auto Insurance. If your liquor store owns or leases vehicles, this policy protects the business from potential exposure arising from accidents. It can cover your legal fees and the medical costs of others if you or your employee is at fault in an accident in your vehicle. It can pay for damages even if the vehicle is used for personal activities outside its primary business use. 
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    Umbrella Insurance. Every liability insurance policy has a maximum it will pay in the event of an incident, with your company being responsible for any amount over that figure. Umbrella insurance adds another layer of protection, potentially covering costs that exceed the limit of another biBerk liability policy up to its own limit.  
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    Cyber Insurance. You can purchase this coverage as an add-on to a general liability policy or a BOP. It helps cover expenses related to system hacks or security breaches where sensitive data, like client credit card information, has been stolen and fraud has occurred or there is a reasonable expectation that it might happen. It can also address the accidental release of sensitive information.

If you’re familiar with insurance coverage options for liquor stores, you may know exactly what you need. But don’t worry if you’ve never purchased this type of coverage before—we provide various resources to educate and assist you. For example, there’s lots of good information on the product pages of our website. We also have written (and posted on our site) many articles on general and specific insurance-related topics.

Plus, our licensed insurance experts are available during business hours and happy to answer any questions you have. For example, how do you protect your business when employees use their personal vehicles to make deliveries? (Answer: That’s the hired and non-owned auto liability add-on mentioned in the product descriptions above.)

What does liquor store insurance cover?

This insurance isn't a single policy but rather a collection of coverages designed to address specific threats. Generally, it pays for costs arising from lawsuits, such as medical bills if a customer slips in your aisle or legal fees if you are sued for property damage.

It also helps repair or replace your building and inventory after events like fires or storms. Additionally, specific add-ons can address risks related to selling alcohol, data theft, and employee injuries.

What is liquor liability insurance?

Liquor liability insurance is a type of coverage you can add to a general liability or business owners policy. It protects your business against claims that one of your employees served someone who was visibly intoxicated or under the legal drinking age, and then that person injured someone or damaged their property.

Liquor liability insurance is crucial coverage for businesses that face this type of risk.

Factors that affect liquor store insurance costs

Insurers look at several details to calculate the cost of liquor store insurance, starting with your store's location and annual revenue. The number of people you employ and the specific coverage limits you select also play a big role in the final price and your specific liquor liability insurance cost.

Additionally, your history matters. Businesses with a track record of frequent claims often pay more than those that have operated claim-free.

Of course, your insurance cost will be higher if you manage multiple locations, but the financial protection is worth it. Consistent coverage across all your stores strengthens operational stability, protecting your chain from the increased exposure of employee errors and equipment failures. This proactive oversight simplifies risk management, ensuring no location is left vulnerable. Ultimately, keeping every branch protected helps preserve the hard-earned reputation of your entire brand.

What will my liquor store insurance cost?

The factors noted above will affect your liquor store insurance cost. You can determine what you’ll pay for different policies by getting instant, self-service liquor store insurance quotes on our website whenever you have a few minutes to answer some questions. But to give you a general sense of the cost of business insurance, you can typically get a policy with hundreds of thousands of dollars in coverage for as little as a few hundred dollars annually. That’s remarkable and reassuring, considering that even a minor slip-and-fall injury and lawsuit can easily lead to anywhere from a few to several thousand dollars in expenses.

Remember that when you purchase liquor store insurance from biBerk, you can save up to 20% over other providers. That’s because biBerk sells directly to you without brokers or other intermediaries.

And you can buy with confidence. biBerk is part of the Berkshire Hathaway Insurance Group. That means we have the financial resources to pay approved claims fully and promptly. What’s more, we’ve proven over several decades that we’ll be there for business owners in a wide variety of industries if they’re sued or suffer property damage.

How to get liquor store insurance from biBerk

We’ve stripped away the complexity of buying coverage by allowing you to work directly with us, avoiding the middleman and potential broker fees. You can get a liquor store insurance quote online in minutes by answering a few simple questions about your business operations. If you prefer a human touch, our licensed insurance experts are available to walk you through your options and help you get coverage immediately.

Liquor store insurance: frequently asked questions

  • What insurance does a liquor store need?
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    A business owners policy (BOP) is a good place to start because it conveniently bundles general liability and property coverage into one package. If you have staff, workers' compensation is almost always required by state law. You should also get commercial auto coverage if you make deliveries, and cyber insurance to safeguard customer credit card data.

  • Is liquor liability insurance required by law?
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    It depends on where your business is located. Many states have "dram shop" laws that hold sellers responsible for the actions of intoxicated customers, and some of these states require you to carry liability coverage to maintain your liquor license. Even if it isn't state-mandated, landlords often require it before they will sign a lease.

  • Does liquor liability insurance cover sales to minors?
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    Business insurance for alcohol retailers helps protect your store if you are sued because an employee sold alcohol to a minor who subsequently caused an injury or property damage. Essentially, it covers the liability costs resulting from that sale. However, it does not protect you from criminal charges or fines associated with breaking the law.

  • Does liquor store insurance cover theft or burglary?
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    Yes, provided you have commercial property coverage, which is standard in a biBerk business owners policy. This coverage typically pays to repair physical damage to your store caused by a break-in, such as a smashed window or broken door, and reimburses you for stolen inventory or equipment up to your policy limits.

  • Do I need insurance if my liquor store does not serve alcohol on-site?
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    Yes. Even if customers don't open bottles in your shop, you still face standard retail risks like slip-and-fall accidents, fire, or theft. Furthermore, you can still be held liable under dram shop laws if a customer purchases alcohol from you, consumes it elsewhere, and causes an accident while intoxicated.

  • Do I need separate insurance for online or delivery alcohol sales?
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    You usually don't need a completely separate policy, but you do need specific coverage types to address these operations. If you deliver, commercial auto insurance (or hired and non-owned auto coverage) is essential to cover vehicle accidents. If you sell online, cyber insurance is critical for protecting the sensitive digital payment information you collect.

  • Can I add liquor liability to an existing policy or do I need a new one?
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    With biBerk, you do not need to buy a separate standalone policy. We offer liquor liability as an affordable add-on (endorsement) to our general liability insurance or business owners policy. This simplifies your insurance portfolio by keeping your essential coverages under one contract.

Small business insurance for liquor stores: Reliable and affordable coverage is easy to obtain!

At biBerk, we’re a trusted business insurance provider whose mission is to take the hassles out of buying (and using) small business insurance. We enable you to purchase policies online, with coverage active as soon as the next day in most cases. You can also manage your policies and report claims online for maximum convenience.

You need business insurance you can count on. Learn more about insurance coverage for liquor stores from biBerk, a recognized leader in small business insurance. 

Get covered, and protect your business today!