Liquor Liability Insurance Tennessee: Protecting Your Business

Whether you own a bar, restaurant, or liquor store in Tennessee, it’s important to consider the risks that come with selling alcohol. In the event that a customer becomes intoxicated and causes harm to themselves or others, your business could be held liable. This is where liquor liability insurance comes in.

What is Liquor Liability Insurance?

Liquor liability insurance is a type of liability coverage that protects businesses that sell or serve alcohol. It covers damages and legal costs that may arise from alcohol-related incidents such as property damage, injuries, or even death caused by an intoxicated patron.

Why is Liquor Liability Insurance Important?

Without liquor liability insurance, your business could be responsible for paying large sums of money in damages and legal fees in the event that a patron becomes intoxicated and causes harm. This could potentially bankrupt your business or result in you losing your liquor license.

Furthermore, liquor liability insurance is often required by law. In Tennessee, businesses that sell or serve alcohol are required to carry liquor liability insurance with a minimum coverage of $100,000 per occurrence and $300,000 aggregate per year.

What Does Liquor Liability Insurance Cover?

Liquor liability insurance covers a range of alcohol-related incidents, including:

  • Bodily injury caused by an intoxicated patron
  • Property damage caused by an intoxicated patron
  • Legal defense costs if you are sued
  • Settlements or judgments against your business
  • Punitive damages, if applicable

What Doesn’t Liquor Liability Insurance Cover?

It’s important to note that liquor liability insurance does not cover incidents that occur while the insured person is under the influence of drugs or illegal substances. It also doesn’t cover intentional actions or criminal behavior.

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How Much Does Liquor Liability Insurance Cost in Tennessee?

The cost of liquor liability insurance in Tennessee can vary depending on a number of factors, including:

  • The size of your business
  • The type of alcohol you serve
  • The location of your business
  • Your claim history
  • Your coverage limits

It’s important to work with an experienced insurance agent who can help you determine the appropriate coverage for your business and find the best rates.

Where Can You Buy Liquor Liability Insurance in Tennessee?

Liquor liability insurance can be purchased through most commercial insurance providers in Tennessee. It’s important to do your research and compare quotes from multiple providers in order to find the best coverage for your business.


As a business owner in Tennessee, it’s important to protect yourself from the risks associated with selling or serving alcohol. Liquor liability insurance provides the coverage you need to ensure that your business is protected in the event of an alcohol-related incident. Talk to an experienced insurance agent to find the best coverage for your business and stay compliant with Tennessee’s liquor liability insurance laws.