Drunk Guests: Social Host Liability and Homeowners Insurance Coverage

The age-old question is,  “Am I responsible if a drunk guest is drunk and drives home?” The short answer is yes, but if you have homeowners insurance, you may have some of the legal costs covered. Let’s take a look at liability for drunk guests and when your insurance coverage may be able to help.

On This Page

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  What Is Social Host Liability? 

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  What Are the Social Host Liability Laws in My State?

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  What Happens if You Serve Alcohol to a Minor?

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  How Does Homeowners Insurance Cover Social Host Liability for Drunk Guests?

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  Does Home Insurance Cover Social Host Liability for Serving a Minor?

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  Drunk Guests and Social Liability Laws FAQs

What Is Social Host Liability? 

Homeowners who serve alcohol to guests who then cause harm to others can find themselves in trouble. Social host liability laws pertain to party hosts who serve alcoholic beverages while entertaining. 

Although most state laws are generally aimed at curbing underage drinking by holding hosts liable, the law can also find the party host liable for alcohol-related injuries or death by adults of legal drinking age who then drive or harm others as a result of drinking.(2)

It's always advised that you hire a professional bartender who will stop serving alcohol to a drunken guest, without you having to have an uncomfortable confrontation. Also, never pressure guests to consume alcoholic beverages.

What Are the Social Host Liability Laws in My State?

Most states require sellers and suppliers of alcohol to pay damages for alcohol-related injuries and fatalities in certain situations. These are called dram shop laws. Social host liability laws pertain to situations in which a host serves alcohol and there is an accident afterwards, causing alcohol-related injuries or fatalities.

What is a dram shop, you ask? Taverns and bars used to be called dram shops, so the word has remained in the legal lexicon ever since. An establishment with a liquor license can be found financially liable for deaths and injuries if it’s found out that they continued to serve a patron who was already visibly drunk. Their business insurance may offer liquor liability coverage.

However, dram shop laws do not relate to hosts who entertain with alcoholic beverages. Social host liability laws are the relevant laws, and they vary by state.

In some states there is no liability for social hosts while some states limit liability to injuries that occur on the host’s premises. A few states impose the host’s liability to injuries that occur on the premises and after the guest leaves your home. All states have laws that pertain specifically to furnishing alcohol to minors, which is illegal anywhere in the U.S.(1)

Some states are stricter than others too. You may even be charged in a wrongful death lawsuit if the drunk guest causes a fatal car accident. That's why it's important to promote safe alcohol consumption, which requires you to recognize signs of intoxication.

Encourage guests to have coffee, tea or other non alcoholic beverages as the party winds down, so guests drink less alcohol and are able to sober up before leaving.

What Happens if You Serve Alcohol to a Minor?

Imagine that you had a party at your home, and a friend or relative’s teenager wanted to have some wine and their parents allowed it. Now, let’s look at whether or not you’re liable if that teenager drove afterwards and it was discovered that he’d been drinking at your home. Would you be responsible for serving a minor? Yes, serving alcohol to a minor is against the law, even if the parent gives permission. As the homeowner, you can be held responsible.

To protect yourself, politely tell the guest that you don’t feel comfortable serving alcohol to anyone under the age of 21, which is the legal drinking age in every state in the U.S. Offer them non alcoholic beverages or mocktails instead.

How Does Homeowners Insurance Cover Social Host Liability for Drunk Guests?

Most homeowners insurance policies provide coverage for social host liquor liability. However, limits vary and may be insufficient if you’re found financially liable for an accident, injuries and even death caused by a drunk guest. It is a good idea to:

1. Find out what the social host liability law is in your state.
2. Find out what the limits of liquor liability are on your homeowners insurance policy.
3. Offer non alcoholic beverages, especially to drunk guests, who have consumed alcohol and are obviously inebriated.
4. Encourage controlled drinking and Uber or Lyft rides for guests who are visibly drunk.
5. Do not serve anyone under the age of 21.

Does Home Insurance Cover Social Host Liability for Serving a Minor?

Since serving a minor alcohol is against the law in every state, homeowners insurance will not cover social host liability for serving a minor.

Insurance claims are never paid out for criminal activity, and serving alcohol to a minor is a crime.

If you serve alcohol to a minor in your home, even with their parent’s consent, you can face stiff fines, imprisonment and a civil lawsuit if that minor injures or kills someone as a result of alcohol-related impairment.