Liquor Liability Insurance in Oregon
A patron who voluntarily drinks cannot sue the server even if served while visibly intoxicated. A third party may recover only on clear-and-convincing proof that the licensee served the patron while visibly intoxicated and that the plaintiff did not substantially contribute to the intoxication. The heightened standard and notice rules deliberately limit liability.
Reviewed by a licensed commercial insurance agent. Last updated .
Under ORS 471.565, an Oregon licensee is liable only if the plaintiff proves by clear and convincing evidence that the patron was served while visibly intoxicated. Strict notice deadlines apply. Separately, ORS 471.168 requires most on-premises licensees to carry $300,000 liquor-liability insurance (or a bond) as a condition of licensure.
- Dram shop law?
- Yes
- Insurance required?
- Yes — tied to the liquor license
- Recommended limits
- $1M/$2M (well above the $300K statutory floor)
- Alcohol authority
- Oregon Liquor & Cannabis Commission (OLCC)
Dram shop law in Oregon
A patron who voluntarily drinks cannot sue the server even if served while visibly intoxicated. A third party may recover only on clear-and-convincing proof that the licensee served the patron while visibly intoxicated and that the plaintiff did not substantially contribute to the intoxication. The heightened standard and notice rules deliberately limit liability.
Statute: ORS 471.565 (liability); ORS 471.168 (insurance mandate).
Is liquor liability insurance required in Oregon?
ORS 471.168 requires full/limited on-premises, brewery-public-house, and certain event and producer sales licensees to carry liquor-liability insurance of at least $300,000 (or a bond). Notice of a claim must be given within 180 days of injury (one year for wrongful death).
What liquor liability costs in Oregon
- Restaurant: ~$45/mo national (~$538/yr); Oregon avg ~$75/mo (Insureon)
- Bar / tavern: ~$115/mo (~$1,379/yr) (Insureon)
- Nightclub: $150–$300+/month (estimate)
What owners in Oregon miss
- “Visibly intoxicated” at the time of service is the key element — post-service intoxication or mere over-service is not enough.
- The clear-and-convincing standard is higher than the usual civil preponderance test, making claims harder to win.
- Missing the 180-day (injury) or one-year (death) notice window generally bars the claim.
- The $300,000 insurance/bond is a hard licensing condition — non-compliance can cost the license.
Sources
- Oregon State Legislature: ORS Chapter 471 — Liquor liability (ORS 471.565; 471.168)primaryretrieved 2026-07-27
- Oregon Liquor & Cannabis Commission: OLCC (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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