Liquor Liability vs General Liability for Liquor Stores: What’s the Difference?

Nate Jones, CPCU, ARM, CLCS, AU
2 days ago
2 min read

For liquor store owners, understanding insurance coverage is essential, especially when it comes to liquor liability and general liability. Although these two coverages sound similar, they protect your business from very different risks. Having only one can leave dangerous gaps in protection and increase the financial impact of a claim.

Here’s a clear, practical breakdown of the difference between liquor liability and general liability for liquor stores.

Liquor Liability vs General Liability for Liquor Stores: What’s the Difference?

1) What Is General Liability Insurance?

General liability is the foundation of liquor store business insurance. It protects your store from everyday risks, including:

Customer slip‑and‑fall injuries
A customer tripping over boxes or displays
Damage caused by your operations
Legal fees from premises liability lawsuits

This coverage responds to accidents, not alcohol‑related incidents. For general liability concepts, the Insurance Information Institute provides small-business risk education and liability basics.

However, general liability does not protect you from any claim tied to the sale of alcohol.

2) What Is Liquor Liability Insurance?

Liquor liability protects your store from claims involving the sale of alcohol, including:

Selling alcohol to someone who later causes injury or property damage
Failing to verify identification
Selling to an intoxicated customer
Allegations tied to alcohol-related incidents

If a customer leaves your store, becomes intoxicated, and injures someone, your business can be held liable in many states. This is why liquor liability is required or strongly recommended by:

State Alcohol Beverage Control (ABC) agencies
Many wholesalers
Landlords leasing to liquor retailers

Without liquor liability, your general liability policy will not cover alcohol-related claims.

3) Why Liquor Stores Need Both Coverages

A liquor store faces two categories of risk:

Operational Risks → Covered by General Liability

Slips, falls, or injuries inside the store
Damage from displays, shelving, or inventory
Parking lot incidents

Alcohol‑Sale Risks → Covered by Liquor Liability

Selling to minors
Improper ID checks
Over-service allegations

Without both, your liquor store may be dangerously under-insured.

4) How This Impacts Your Insurance Premium

When requesting a liquor store business insurance quote, carriers evaluate:

Liquor sales volume
ID‑checking procedures
Security systems
Claims history
Hours of operation

Liquor liability can be one of the higher-cost policies, depending on your risk profile, but it protects your business from catastrophic alcohol-related claims.

Get the Right Liability Coverage for Your Liquor Store

Not every insurance carrier offers liquor liability or understands the risks liquor stores face. Wexford Insurance partners with top-rated carriers that specialise in liquor store coverage, helping owners secure the right general liability, liquor liability, and supporting policies at competitive pricing.