What is Liquor Liability Insurance?

Posted on: November 17, 2025
Free Case Evaluation
100% Secure and Confidential
Awards & Recognition
award - best upstate
award - Million Dollar Advocate 1
award -Million Dollar Advocated Logo
award -superlawyers
award - SCAJ Logo 1
award - SC Bar Logo

Businesses have a duty to follow liquor liability laws and serve alcohol responsibly. When they fail to do so, and their actions lead to harm, they can be held accountable. The law offers ways to seek justice and compensation from those who provided the drinks. If a business has liquor liability insurance, then it will have insurance coverage to pay for damages resulting from the service of alcohol.

Businesses like bars, restaurants, and event venues often have this insurance. Even a person hosting a private party might have liquor liability insurance for an event. This coverage will pay for damages, medical bills, and other costs that arise from an accident caused by an intoxicated person.

If you are injured by a drunk driver, you should not have to bear the costs of others’ mistakes. If a business or person overserved alcohol, and that led to your injuries, then you have a right to seek justice.

What Is Liquor Liability Insurance?

Liquor liability insurance is a type of coverage that indemnifies a business or individual from claims related to the sale or serving of alcohol. This type of insurance covers damages that arise from injuries or property damage caused by an intoxicated person.

If an intoxicated customer causes a car accident or injures another person, then liquor liability coverage will pay for the business’s legal defense, court costs, and any settlements or judgments that may be awarded.

What Types of Businesses May Carry Liquor Liability Insurance?

If a business that sells or serves alcohol, it may have liquor liability insurance. This includes restaurants, bars, nightclubs, breweries, wineries, and liquor stores. South Carolina requires this coverage as a condition for a liquor license for on-premises consumption.

Other businesses that may have this coverage are those that host events where alcohol is served. This includes caterers, hotels, and event venues. Retail businesses such as convenience stores may also have liquor liability coverage.

Common Claims Covered by Liquor Liability Insurance

This type of insurance can help with different kinds of claims. It can provide coverage for lawsuits filed by a person injured by an intoxicated patron. It can also provide coverage for the costs of repairing property damaged by a drunk person. The insurance can pay for legal defense fees, settlements, and court judgments.

Examples of claims include:

  • Drunk Driving Accidents: A bar is sued after a customer causes a car crash.
  • Assault and Battery: A patron gets into a fight and injures someone.
  • Slips and Falls: An intoxicated person falls and injures themselves or someone else after being served alcohol.

How Much Liquor Liability Coverage is Required?

Determining the amount of liquor liability insurance that is required in Greenville, SC, begins with understanding South Carolina’s specific laws. The state has a clear rule for businesses.

According to South Carolina law, any establishment that is licensed to sell alcoholic beverages for on-premises consumption and remains open after 5:00 p.m. must have a liquor liability insurance policy. The minimum coverage required by this law is $1 million through the end of 2025. Beginning in 2026, the minimum annual aggregate limit of insurance is $500,000 and can be reduced to $300,000 if a business adopts risk-lowering practices such as enhanced training. This rule applies to businesses like bars, restaurants, and nightclubs that serve alcohol.

This law was created to protect the public from the actions of intoxicated individuals. Before the law, a business could over-serve a customer who then caused a serious accident. If that business had no insurance, the injured person might have no way to recover their losses for medical bills and other damages. The law aims to ensure that there is a source of funds to pay for these costs, which can be life-changing for accident victims.

While the law imposes a minimum requirement, some businesses may have more coverage since the minimum may not be enough to cover a major accident with multiple victims or a large legal judgment. The amount of coverage a business needs can depend on factors such as the business’s size, the volume of alcohol it sells, and a business’s specific risk level.

How a Greenville Liquor Liability Lawyer Can Help

If you have been injured by an intoxicated person, you may be facing serious physical and financial challenges. The medical bills can add up quickly, and you may be unable to work. A Greenville liquor liability lawyer can help you seek justice and get the money you deserve.

A Greenville liquor liability lawyer can assist you in several ways:

     1. Investigating Your Claim

We will work to find out where the at-fault person was served alcohol. We will gather evidence, which can include police reports, witness statements, and security footage. We will look for proof that a bar, restaurant, or other business served alcohol to someone who was already intoxicated or was a minor.

     2. Building a Strong Case

To prove that you are entitled to compensation, you must show that the business’s actions directly led to your injury. This means proving that they were negligent in serving alcohol. We know what it takes to build a legal case that stands up in court.

     3. Fighting for Fair Compensation

Your injuries may have led to medical bills, lost wages, and pain and suffering. We will fight to get you a settlement that covers all of these costs. Our goal is to make sure you have the money you need to recover and move forward with your life.

     4. Dealing with Insurance Companies

Insurance companies often try to settle for the lowest possible amount. We will handle all communication with them on your behalf. We will work to ensure that you are not taken advantage of and that you receive the full amount you deserve.

Contact our Greenville Liquor Liability Lawyer

If you have been hurt because of a bar, restaurant, or person who over-served someone, you should speak with a lawyer. A lawyer can help fight for your rights, so you have the best possible chance of receiving full compensation.

Contact David R. Price, Jr., P.A. at 864-271-2636 for help with your case. We are here to answer your questions and protect your rights.

Frequently Asked Questions

What does a personal injury lawyer do?

A personal injury lawyer is a licensed professional who helps an injured person with his or her legal case. A personal injury lawyer investigates the situation and evaluates the injured person’s legal options. The lawyer files the claim and acts on their client’s behalf both inside and outside the courtroom. Having a personal injury lawyer means having a trained professional fighting for you in your legal matter.

My case is complex. Can you help me?

Our team is ready for even the most complex cases. Whether it is investigating a complicated legal or factual issue, or presenting your case in court, our team can serve your legal needs.

How do I start a personal injury case?

Often, it is possible to negotiate directly with an insurance company without resorting to a lawsuit, but a case doesn’t formally begin until a claim is filed in court. To start a personal injury case, contact our law offices. We will notify the necessary parties of your claim, and we will draft and file your legal papers to start your case.

Why choose David R. Price, Jr., P.A., Attorneys at Law?

We are proud to handle personal injury cases, wrongful death cases, and other important legal matters for individuals and their families. With our extensive experience, determined advocacy, and personalized representation, we get results for our clients. Contact us for a personalized consultation and begin today.

David R Price Jr, P.A. Attorneys at Law

864-271-2636
Available 24/7

"*" indicates required fields