Restaurant insurance guide
Liquor liability laws by state
Whether and when a restaurant or bar can be held responsible for a drunk customer's actions depends heavily on state law.
State statutes
| State | Liquor liability (dram shop) law |
|---|---|
| Washington | RCW 66.44.200 (sales to apparently intoxicated persons); Washington liability is largely shaped by court decisions |
| Oregon | ORS 471.565 (liability of alcohol servers) |
| Idaho | Idaho Code § 23-808 (liability of alcohol beverage sellers) |
| Nevada | NRS 41.1305 (liability of persons who serve alcoholic beverages) |
| Arkansas | Ark. Code § 16-126-104 (civil liability for sales to intoxicated persons) |
| Arizona | A.R.S. §§ 4-311 and 4-312 (liquor licensee liability) |
| South Dakota | SDCL § 35-11-1 (civil liability of alcohol sellers) |
| Pennsylvania | 47 P.S. §§ 4-493(1) and 4-497 (Liquor Code; licensee liability) |
| Texas | Texas Alcoholic Beverage Code chapter 2 (dram shop provisions) |
| Indiana | Ind. Code § 7.1-5-10-15.5 (furnishing alcohol; civil liability) |
Statute names are provided for reference only; courts also shape how these laws apply. Read the current text and consult counsel about any claim.
Common elements
- Sales to a visibly or obviously intoxicated person
- Sales to minors
- Proof that the service caused or contributed to the injury
- Limits on who can sue, such as excluding the intoxicated person
- Notice or filing deadlines
Why courts matter
Courts interpret these statutes and, in some states, have created liability rules on their own. The same facts can lead to different outcomes in neighboring states. This page is general information, not legal advice.
Managing the risk
Train staff, check IDs, document refusals, and keep incident reports. Make sure your liquor liability limits match your sales and your lease or venue requirements. See liquor liability insurance.
Frequently asked questions
What is a dram shop law?
A law that addresses when a business that sells alcohol can be held liable for injuries caused by an intoxicated customer.
Are dram shop laws the same everywhere?
No. Some states impose liability by statute, some limit it, and some rely mostly on court decisions.
Does training reduce liability?
Responsible service programs reduce incidents and can matter in some states' laws and in insurance underwriting.
More coverage and guides
- General liability for restaurants
- Liquor liability insurance
- Commercial property for restaurants
- Workers' compensation for restaurants
- Business owners policy for restaurants
- Commercial auto and delivery coverage
- Catering insurance
- Food truck insurance
- Liquor liability laws by state
- What affects restaurant insurance cost
- Restaurant risk management checklist
- Food spoilage and equipment breakdown
- Restaurant insurance application checklist
Last updated October 15, 2026 · How we research