Food & Beverage Insurance Agency Warns That Restaurants and Bars Operating Without Liquor Liability Insurance Risk Losing Everything

Liquor liability insurance protects against costly lawsuits from alcohol-related injuries and incidences.

PR Newswire

HOUSTON, Aug. 13, 2014 /PRNewswire/ -- Running a business that serves alcohol to patrons comes with its own set of unique challenges and liabilities. In most states, bars can be held liable for damages resulting from over-serving patrons or serving alcohol to someone when they are already obviously intoxicated. If a patron has a few too many to drink and harms themselves or somebody else, the bar that served them could be facing a lawsuit for millions of dollars. That's why one Houston bar insurance agency is spreading the word to bar owners about the importance of liquor liability insurance.

Photo -

Liquor liability insurance is a specialized policy designed specifically to protect bars, nightclubs, and restaurants against lawsuits resulting from tipsy patrons causing injury or damage. Most general liability policies exclude such occurrences from coverage, so it's important for bar owners to invest in a liquor liability insurance policy if they want to stay protected against a costly lawsuit.

"The dram shop laws that are in place in most states across the country are very hard on businesses that serve alcohol to customers, holding them responsible for the actions of customers that get buzzed and hurt themselves or other people," said Joe Thomas, founder of Food & Beverage Insurance Agency in Houston.

"With so much at stake," Thomas said, "it's surprising and unfortunate that an estimated two out of three bars, restaurants and clubs don't have liquor liability insurance. I've been an agent offering bar insurance in Houston for a long time, and I've witnessed a lot of cautionary tales from businesses operating without liquor liability insurance. It's simply not worth the risk."

How costly can a dram shop lawsuit be? In October 2013, a Texas jury found a bar liable for $18.75 million in the 2011 death of 18-year-old Bryan Hernandez who was killed by a drunk driver who was coming home from a Corpus Christi bar. The bar had liquor liability insurance.

In a more recent case that's still ongoing, a man from San Leon, Texas (a town south of Houston) is seeking more than $200,000 in damages from a bar he alleges over-served a patron who became intoxicated and injured the plaintiff on a boat ride. It's unknown at this time whether or not the bar has liquor liability insurance.

"Running a bar without having liquor liability insurance is like playing Russian Roulette. Sooner or later, you're going to lose everything," said Thomas.

For more information on liquor liability insurance, visit

About Food & Beverage Insurance Agency

Food & Beverage Insurance Agency (FNBIA) specializes in providing Houston-area bars, restaurants and other establishments that serve alcohol with insurance programs designed specifically for their unique needs. From general liability to liquor liability insurance in Houston, the team at FNBIA offers a host of bar insurance solutions. Learn more at

Media Contact:  Joe Thomas 832.271.0790

View Comments (0)