Liquor Liability Insurance in North Dakota
Any individual injured by an obviously intoxicated person has a claim for relief against any person who knowingly disposes, sells, barters, or gives away alcohol to a person under 21, an incompetent, or an obviously intoxicated individual. Claims run under North Dakota’s comparative-fault statute, and no damage cap applies.
Reviewed by a licensed commercial insurance agent. Last updated .
North Dakota has a broad dram-shop law (N.D.C.C. § 5-01-06.1): anyone injured by an obviously intoxicated person may sue any person — commercial vendor or social host — who knowingly furnished alcohol to someone under 21, an incompetent, or an obviously intoxicated individual. There is no statutory damage cap; the intoxicated person and adult passengers cannot recover.
- Dram shop law?
- Yes
- Insurance required?
- Not by statute (often required in practice)
- Recommended limits
- $1M/$2M (no damage cap; higher for high-volume venues)
- Alcohol authority
- North Dakota Office of the Attorney General — Licensing and Gaming
Dram shop law in North Dakota
Any individual injured by an obviously intoxicated person has a claim for relief against any person who knowingly disposes, sells, barters, or gives away alcohol to a person under 21, an incompetent, or an obviously intoxicated individual. Claims run under North Dakota’s comparative-fault statute, and no damage cap applies.
Statute: N.D.C.C. § 5-01-06.1.
Is liquor liability insurance required in North Dakota?
No statewide statute mandates dram-shop insurance for all retail licensees. Retailers need a state license from the ND Attorney General plus a local license; some local governing bodies may impose insurance or bond conditions. Given the broad, uncapped exposure, coverage is strongly advised.
What liquor liability costs in North Dakota
- Restaurant: $500–$1,500/yr (Insureon; ~$41–$45/mo)
- Bar / tavern: $1,200–$5,000/yr (Insureon bar avg ~$1,379)
- Nightclub: $2,500–$7,500+/yr (estimate)
What owners in North Dakota miss
- Reaches both commercial sellers and social hosts — “any person who knowingly disposes, sells, barters, or gives away” alcohol.
- Requires knowing service to a protected class: under-21, incompetent, or obviously intoxicated.
- Claims are adjudicated under modified comparative fault; there is no statutory damage cap.
- The intoxicated person, their estate, and an adult passenger in the vehicle cannot recover; server training mitigates exemplary damages.
Sources
- North Dakota Legislative Branch: N.D.C.C. § 5-01-06.1 — Claim for relief for fault resulting from intoxicationprimaryretrieved 2026-07-27
- North Dakota Office of the Attorney General: Retail Alcoholic Beverage License (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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