Liquor Liability Laws in Colorado & Wyoming: What Bar & Restaurant Owners Need to Know

If your business serves, sells, or allows alcohol—whether you’re running a full bar, a restaurant with a liquor license, or hosting private events—you need to understand how liquor liability laws work in Colorado and Wyoming. One mistake can lead to fines, lawsuits, or even losing your license.

This guide breaks down what liquor liability coverage does, how state laws affect your responsibility, and why smart business owners make it part of their insurance plan.

What Is Liquor Liability Insurance?

Liquor liability insurance helps protect your business from claims related to serving alcohol. That includes things like:

• An intoxicated guest causing a car accident after leaving your bar

• A fight breaking out on your premises

• A minor being served and triggering a citation or lawsuit

Even if your staff follows the rules, your business can still be held legally and financially responsible.

Colorado Liquor Liability Laws

In Colorado, the state follows what's called a “dram shop” law. This means your business can be held liable if you serve someone who is visibly intoxicated or under 21—and they cause harm to others.

Key points for Colorado bar & restaurant owners:

• Training staff to spot intoxication is essential

• You need proof of insurance for many liquor license applications

• Most landlords and event spaces require liquor liability coverage

Wyoming Liquor Liability Laws

Wyoming’s laws are less specific than Colorado’s but still allow for third-party lawsuits. That means if someone is injured by an intoxicated person who was served at your business, you could be named in a claim—even if your staff didn’t break the law.

What this means in practice:

• Even BYOB events or private parties can create liability

• Having insurance in place protects your business and license

• Cities like Cheyenne or Laramie may have additional local ordinances

Who Needs Liquor Liability Insurance?

You do—if you run any of the following:

• Bar, pub, or nightclub

• Restaurant that serves beer, wine, or cocktails

• Brewery or distillery tasting room

• Event space or catering service

• Convenience store or grocery store with alcohol sales

• Private event venue

Even temporary events with alcohol—like festivals or fundraisers—should carry coverage.

How Much Coverage Do You Need?

It depends on your business type, hours of operation, and local requirements. Some cities or landlords may require $1 million in coverage or more. We help you figure out exactly what limits you need to meet your obligations and protect your business.

Why Local Knowledge Matters

We live and work in the same places you do. That means we understand what’s expected by liquor boards in Colorado Springs, city councils in Cheyenne, and property owners in both states. We make it easy to get coverage that keeps you in compliance and confident.

 

If alcohol is part of your business, insurance should be too.
We’ll help you get liquor liability coverage that matches your business model, licensing needs, and risk level—without overpaying.

 

Call now or request a quote to protect your bar, restaurant, or event the right way.