Short answer: Dram shop laws decide when a business that sells or serves alcohol can be sued for harm caused by an intoxicated customer. California and Florida generally bar these claims for serving adults, with exceptions for minors (and, in Florida, people known to be addicted). Minnesota, Iowa and Michigan allow claims tied to illegal or visibly-intoxicated sales, and Minnesota and Iowa require most retail licensees to show proof of financial responsibility, such as liquor liability insurance.
Even where liability is limited, a lawsuit can still be costly to defend. Most general liability policies exclude liquor liability for businesses that sell alcohol.
The table
| State | Liability rule | Exceptions and insurance | Source |
|---|---|---|---|
| California | Generally no liability for serving adults; licensed sellers and anyone who sells alcohol can be sued for selling or furnishing to an obviously intoxicated minor when that causes injury or death | The general rule against seller liability is in B&P §25602; §25602.1 is the minor exception | Cal. Bus. & Prof. Code §25602.1 |
| Florida | Sellers or servers aren't liable for injuries caused by an intoxicated adult of legal drinking age | Exceptions: willfully and unlawfully serving someone under the legal drinking age, or knowingly serving a person habitually addicted to alcohol | Fla. Stat. §768.125 |
| Georgia | Selling or serving an adult of lawful drinking age doesn't by itself create liability; a seller may be liable if it knowingly serves a minor or a noticeably intoxicated person knowing that person will soon be driving, and the service is the proximate cause | The drinker can't sue the provider for his or her own injuries; reliance on valid ID is rebuttable proof that a sale to a minor wasn't knowing | O.C.G.A. §51-1-40 |
| Idaho | A seller or furnisher is liable only if it knew or should have known the person was underage, or was obviously intoxicated, when served | The intoxicated person and passengers riding with an intoxicated driver can't sue under this law. The injured person must give notice by certified mail within 180 days | Idaho Code §23-808 |
| Iowa | Injured third parties can sue a licensee or permittee who sold and served alcohol directly to a person who was visibly intoxicated at the time | Noneconomic damages are capped at $250,000 unless the jury finds substantial or permanent impairment, disfigurement or death; most retail licensees must carry liability insurance as proof of financial responsibility | Iowa Code §123.92 |
| Kentucky | A licensed seller or server isn't liable for off-premises injuries caused by an adult it served unless a reasonable person would have known the customer was already intoxicated when served | The intoxicated person is primarily liable to injured third parties. The limit doesn't protect anyone who forces alcohol on someone or falsely says a drink has no alcohol | KRS 413.241 |
| Michigan | People injured by a minor or visibly intoxicated person can sue the retail licensee that unlawfully sold or served the alcohol, if the sale was a proximate cause | Suit must be filed within 2 years; written notice to defendants is due within 120 days after hiring a lawyer; the intoxicated person or minor must be a named defendant | MCL §436.1801 |
| Minnesota | Dram shop law: people injured by an intoxicated person can sue whoever caused the intoxication by illegally selling alcohol | Retail liquor licenses require proof of financial responsibility, such as liquor liability insurance of at least $50,000 per person and $100,000 per occurrence for bodily injury, with other minimums for property, loss of support and pecuniary loss | Minn. Stat. §§340A.801, 340A.409 |
| Ohio | Off-premises claims against a liquor permit holder require proof that it knowingly sold to a noticeably intoxicated person or in violation of the underage law, and that the intoxication proximately caused the harm | On-premises or permit-holder-controlled parking lot injuries require the permit holder's negligence; landlords of permit holders are generally not liable | Ohio Rev. Code §4399.18 |
| Oregon | Licensees, permittees and social hosts aren't liable for damage caused by intoxicated patrons or guests unless the plaintiff proves by clear and convincing evidence they served the person while visibly intoxicated and the plaintiff didn't substantially contribute | For off-premises damage, notice must be given within 180 days of injury (one year for wrongful death); a patron who voluntarily drank has no claim for his or her own intoxication injuries | ORS §471.565 |
| Texas | A provider can be liable if it was apparent the person served was obviously intoxicated to the point of being a clear danger, and the intoxication caused the damages | Separately, an adult 21+ (not a parent, guardian or spouse) who knowingly serves or allows a minor under 18 to be served on premises they own or lease is liable for damages the minor's intoxication causes | Tex. Alco. Bev. Code §2.02 |
| Utah | A commercial seller or server is liable for injury or death to a third person if it provides alcohol that causes the intoxication of someone under 21, someone apparently under the influence, someone it knew or should have known was under the influence, or a known interdicted person | Covers all injury and damage except punitive damages; Section 32B-15-202 sets exceptions | Utah Code §32B-15-201 |
We list only states where we read the official text ourselves in October 2026. A state that is missing is not covered here; check that state's statute or insurance department.
For restaurants, bars and event businesses
- Ask about liquor liability coverage. General liability policies often exclude it for alcohol sellers.
- Train staff to check IDs and recognize intoxication.
- Hosting an event, not selling alcohol? See host liquor liability vs. liquor liability.
See the state insurance rules hub.
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Methodology
Each row was read from the official source linked in the Source column in October 2026. This is general information, not legal advice. See also the state insurance rules hub.
Frequently asked questions
Can a bar be sued for a drunk driver's crash in California?
Generally not for serving an adult. California allows claims against a seller who furnishes alcohol to an obviously intoxicated minor when that causes injury or death (B&P §25602.1).
Is liquor liability insurance required in Minnesota?
Retail liquor licensees must show proof of financial responsibility, such as liquor liability insurance meeting minimums like $50,000 per person and $100,000 per occurrence for bodily injury (Minn. Stat. §340A.409).
Does Florida have a dram shop law?
Florida limits liability to serving minors unlawfully or knowingly serving someone habitually addicted to alcohol (Fla. Stat. §768.125).
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. Not legal, tax or financial advice, and not a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.