If you have a liquor license in the State of Michigan, you are required to carry liquor liability insurance.  

Owning a business that serves alcohol, whether in an established location or for a special event, always involves an element of risk. Liquor liability insurance protects you against loss or damages claimed as the result of a patron of your business becoming intoxicated and injuring themselves or others.

If your business manufactures, sells, serves, or facilitates the use or purchase of alcohol, then you need liquor liability insurance coverage.

Liquor liability laws vary greatly by state, and insurance policy coverage options are often confusing. Here are the basics:

• Dram Shop Laws hold commercial establishments that alcoholic beverage servers financially liable for the harm that visibly intoxicated individuals cause to other people, themselves, or property. 
• Liquor Legal Liability provides coverage for bodily injury or property damage for which you may become legally liable as the result of contributing to a person's intoxication.
• Host Liquor Liability Insurance Policies cover special events for businesses that elect to serve alcohol to their employees, prospects, and customers.

When an intoxicated patron leaves your bar or store, gets into his car, drives, and commits vehicular manslaughter, the victim’s family could sue your business for both civil and criminal damages.

Or suppose a restaurant serves alcohol at a catered event, where two guests have a fight, and one incurs serious injuries at the hand of a drunk person.

It is vital that if your establishment serves alcohol, you protect yourself from potential financial losses by being covered with a liquor liability policy.