Alcoholic Beverage Liability Insurance

(redirected from Dram Shop Liability Insurance)

Alcoholic Beverage Liability Insurance

An insurance policy that protects a bar, restaurant, or other provider of alcohol from a lawsuit in the event that an intoxicated person causes damage to a third party. For example, a man may become intoxicated at Joe's Bar and then drive his car into a house. If the owner of that house sues Joe's and wins, alcoholic beverage liability insurance would pay the damages on behalf of the bar. As with all insurance policies, Joe's would pay a premium in order to receive coverage.
References in periodicals archive ?
Los Angeles, CA, February 02, 2019 --(PR.com)-- MFE Insurance, a Los Angeles specialty insurance agency, recently released a blog educating readers on the benefits of dram shop liability insurance. Having this type of insurance can protect establishments from costly legal expenses and prevent financial issues.