The Cost of Not Having Liquor Liability Insurance: Risks and Legal Implications in Colorado

If you own or operate a business that serves alcohol in Colorado, liquor liability insurance is a crucial component of your risk management strategy. Without proper coverage, you could face significant financial and legal consequences. Let’s explore the potential risks and implications of operating without liquor liability insurance.

Legal Consequences for Businesses Without Liquor Liability Insurance: What You Need to Know

In Colorado, businesses that serve alcohol have a legal responsibility to ensure the safety of their patrons. If a patron becomes intoxicated and causes harm to themselves or others, the business may be held liable. Without liquor liability insurance, you could face:

Two people drinking liquor at a bar, highlighting the risks of not having liquor liability insurance in Colorado
Failing to secure liquor liability insurance in Colorado can expose your business to serious legal and financial risks
  • Lawsuits: Injured parties may file lawsuits against your business, seeking compensation for medical expenses, lost wages, and pain and suffering.
  • Legal fees: Defending yourself in a lawsuit can be expensive, and you may need to hire an attorney to represent you.
  • Loss of business: Negative publicity and legal proceedings can damage your business’s reputation and lead to a loss of customers.
  • Criminal charges: In some cases, businesses may face criminal charges if they are found to have contributed to the intoxication of a patron who caused harm.

Financial Risks of Operating Without Liquor Insurance: How One Incident Could Bankrupt Your Business

The financial risks associated with not having liquor liability insurance can be substantial. Even a single incident involving an intoxicated patron can lead to significant financial losses. Potential costs may include:

  • Settlement or judgment amounts: If a lawsuit is successful, you may be required to pay a large settlement or judgment.
  • Legal fees: Defending a lawsuit can be expensive, even if you are ultimately found not liable.
  • Lost business: Negative publicity and legal proceedings can damage your business’s reputation and lead to a loss of customers, resulting in decreased revenue.
  • Business closure: In some cases, the financial burden of a lawsuit and its aftermath may force a business to close.


Liquor liability insurance provides coverage for claims arising from the serving or sale of alcohol on your premises. By purchasing this type of insurance, you can protect your business from the financial and legal consequences of alcohol-related incidents.

Don’t let the fear of the unexpected hold your business back. Our expertly crafted liquor liability insurance policies provide the protection you need to focus on what matters most – growing your business. Contact Prince Insurance today. Let’s build a safety net that’s as strong as your business goals.

Liquor Liability Insurance for Your Bar or Restaurant

Don’t be held liable for intoxicated patrons. If your establishment serves alcohol, liquor liability insurance is a must. Whether you have a bar, restaurant, café, or nightclub, you’ll want to make sure you have this type of insurance in place. 

Here Are Two Important Reasons Why You Need to Get Liquor Liability Insurance

1. Protection in Case of Accidents Inside Your Establishment

What would you do if someone you served in your bar or restaurant started a fight and assaulted another customer? How about if that person broke another customer’s personal belongings?

If an intoxicated person causes bodily or property damage inside your establishment after you’ve served them alcohol, you could be held responsible for the damage. 

Liquor Liability Insurance
If you sell, serve, or manufacture alcohol, then you need liquor liability insurance.

General liability insurance won’t cover situations like this, but liquor liability insurance will. You’ll get help paying for:

  • The cost of legal help
  • The cost of settlements 
  • The cost of repairs to damaged property
  • The cost of medical bills for injured parties.

2. Protection in Case of Accidents After Patrons Have Left Your Establishment

When an intoxicated patron leaves your bar or restaurant, you could still be held responsible for any damage they cause. 

If a patron that you served alcohol to gets into a fight and injures someone, your business could be held accountable. If an intoxicated patron decides to drive their car home and hits someone, it could be you that pays the price. 

It’s important to protect your business from the massive costs that a lawsuit would entail. Liquor liability insurance gives you that protection. 

Contact a Broker

Accidents happen when alcohol is involved. If your establishment serves alcohol to its customers, you need liquor liability insurance. 

Prince insurance can help you find coverage that’s specifically tailored to your industry and insurance needs. Contact us today for a quote!