Liquor Liability in Texas

Texas Alcoholic Beverage Code § 2.02 requires proof that it was apparent the recipient was obviously intoxicated to the extent of presenting a clear danger to themselves and others, and that the intoxication proximately caused the damages. The statute separately reaches an adult who knowingly provides alcohol to a minor under 18, so make sure your quote and service procedures account for both tests. ^1,²

What Is Liquor Liability?

Liquor liability can cover claims tied to your business selling, serving or furnishing alcohol. If you run a bar, restaurant or event where you provide drinks, check how the quote treats injuries, property damage and occasional service. Read the national Liquor liability guide.

What to Watch for in Texas

Texas Uses a Clear-Danger Threshold
The statutory provider claim requires obvious intoxication so severe that the recipient presented a clear danger to self or others, plus proximate causation. Ask the broker how the proposed wording addresses this Texas standard and what exclusions apply to alcohol-service conduct. ¹
The Minor-Recipient Rule Applies Below Age 18
An adult at least 21 may be liable for damages proximately caused by an under-18 minor’s intoxication if the adult knowingly served the minor or allowed alcohol to be served on premises the adult owned or leased. Include private events and alcohol provided at your property in the coverage discussion. ²
Texas Separates Statutory and Common-Law Claims
Section 2.02 preserves common-law actions against the person whose drinking allegedly caused injury, while § 2.03 addresses the exclusivity of the statutory remedy against alcohol providers. Ask how the policy responds to claims against your business, employees, and other insured entities under the applicable Texas theories. ^1,³

Who Regulates Insurance in Texas

Texas Department of Insurance

TDI licenses agents and insurers, reviews company rate filings, and investigates complaints against insurance companies and people it regulates. Its complaint page states limits on what it can resolve, including disputes outside its regulatory authority. ^4,^5,⁶

Surplus-lines tax and stamping office

Reported tax rate: 4.85% of gross premium plus 0.04% SLTX stamping fee When Texas is the insured’s home state, the state tax is 4.85% of gross premium; absent a compact allocation agreement, a multistate policy can be taxed on its entire premium. Policies effective on or after Jan. 1, 2024 also carry a 0.04% stamping fee; SLTX invoices the broker and says the insured pays it, and the surplus-lines insurer is not covered by the Texas guaranty association. ^7,^8,⁹

Surplus Lines Stamping Office of Texas

Providers With Documented State Licenses

These providers publish a national listing for Liquor liability; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Texas. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

CorgiCorgi Insurance Services, Inc.Insurance producer · checked 2026-09-28Corgi’s company producer-license table lists 50 jurisdictions: 49 states and the District of Columbia, including DC license 3003091619. New Mexico does not appear in the table and is not included here; the omission does not establish that Corgi is unlicensed there. The company-reported table has no stated as-of date and does not establish product availability. ¹²

Questions to Ask Before You Buy in Texas

Does the policy address Texas claims under both the clear-danger test and the under-18 minor provision?
How does the quote treat alcohol served at private events on property our business owns or leases?
Are employees and separate property-owning entities insured for Texas alcohol-related claims?
Do defense costs reduce the stated limit, and how are multiple claimants from one event handled?