Liquor Liability Insurance in Delaware
In Wright v. Moffitt, 437 A.2d 554 (Del. 1981), the Delaware Supreme Court held there is no common-law or statutory cause of action against a tavern for serving an intoxicated person, ruling that creating dram-shop liability is for the General Assembly. Shea v. Matassa (2007) reaffirmed this and also declined to recognize social-host liability.
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Delaware recognizes no dram-shop liability — no statute imposes it, and its courts have repeatedly refused to create a common-law claim against alcohol sellers, deferring to the legislature (Wright v. Moffitt; Shea v. Matassa). Intoxicated-patron incidents still generate lawsuits and defense costs, and landlords and venues routinely require liquor liability coverage.
- Dram shop law?
- No — no dram-shop liability
- Insurance required?
- Not by statute (often required in practice)
- Recommended limits
- $1M/$2M (no liability, but advised for defense and premises claims)
Dram shop law in Delaware
In Wright v. Moffitt, 437 A.2d 554 (Del. 1981), the Delaware Supreme Court held there is no common-law or statutory cause of action against a tavern for serving an intoxicated person, ruling that creating dram-shop liability is for the General Assembly. Shea v. Matassa (2007) reaffirmed this and also declined to recognize social-host liability.
Is liquor liability insurance required in Delaware?
Liquor-liability insurance is not mandated by Delaware statute. In practice it is frequently required by commercial landlords, venue leases, franchisors, caterers, and special-event permits, and by lenders.
What liquor liability costs in Delaware
- Restaurant: $400–$1,200/yr (Insureon)
- Bar / tavern: $1,200–$3,000/yr (Insureon bar avg ~$1,379)
- Nightclub: $3,000–$5,000+/yr (estimate)
What owners in Delaware miss
- No dram-shop liability of any kind — statutory or common-law — for injuries to third parties or to the intoxicated patron (Wright barred even the patron’s own claim).
- Delaware is one of about eight states with no dram-shop cause of action; a defense still costs money even when the case fails.
- Social-host liability is likewise not recognized (Shea v. Matassa).
- Standard general liability excludes liquor claims, so separate coverage is still needed to fund defense costs.
Sources
- Delaware Supreme Court: Wright v. Moffitt, 437 A.2d 554 (Del. 1981)primaryretrieved 2026-07-27
- Delaware Office of Alcoholic Beverage Control Commissioner: OABCC (license authority)primaryretrieved 2026-07-27
- Insureon: Liquor Liability Insurance Costindustryretrieved 2026-07-27
Cost examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, revenue, payroll, location, and coverage selections. Restaurant Insurance Authority is an insurance marketing and referral service, not an insurer or licensed agency. We connect business owners with licensed independent commercial-lines agents who specialize in food and beverage. Questions? Call (855) 480-1410.
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