Does Illinois’ Dram Shop Law Affect My Chicago Bar or Restaurant?

If you serve alcohol at your establishment, you may carry more liability than many business owners realize. A customer who drinks too much and later causes third-party damage could expose your business to a lawsuit, and the financial consequences can be severe.

What Is the Dram Shop Law?

The Dram Shop Act can allow injured third parties to sue a bar, restaurant or other alcohol-serving establishment when an intoxicated patron causes harm after being served. This means your business can be named in a lawsuit even if the incident occurred outside your premises and after the customer left. Liability can include medical costs, lost wages and other damages claimed by the injured party.

How Can I Manage These Risks?

Financially safeguarding your business starts with understanding the gaps in your coverage and addressing potential vulnerabilities in your operations. Here are a few tips:

• Review your general liability policy for alcohol-related exclusions.
• Purchase a liquor liability policy, which can cover related expenses if an intoxicated customer causes injuries or damage to someone else after consuming alcohol at your premises.
• Train your staff to recognize signs of intoxication and refuse service appropriately.
• Consult with your agent about whether a business owners policy can be bundled with liquor liability for broader coverage.

Get the Right Coverage Today

Dram shop liability can be a manageable risk with the right coverage in place. Contact Transglobe Insurance Agency to review your current policy, identify any gaps and find coverage that fits your establishment. We proudly serve business owners in Chicago and Chicago, IL.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.