Proper Insurance’s Liquor Liability Coverage for Airbnb Hosts
People drink on vacation; that’s the simple truth. But when your guests pop open a bottle, your standard policy breaks down with one major exclusion: liquor liability.
Proper Insurance’s specialized Liquor Liability Coverage closes these critical coverage gaps, ensuring your short-term rental investment is protected—so you can confidently let your guests raise a glass, while you continue to host worry-free.
What is Liquor Liability Coverage for Short-Term Rentals?
Liquor liability is typically associated with bars, restaurants, or businesses that sell alcohol, but what about hosts who provide it (whether intentionally or accidentally)?
If you leave a bottle of wine as a nice welcome gesture or you accidentally don’t remove all of the liquor stashed in the cabinet between guest stays, you are furnishing alcohol. And that still carries liability.
Here’s how it applies to short-term rentals:
- Providing wine or champagne as a welcome gift — even with the best intentions — could make you liable if it contributes to an incident.
- Accidentally leaving behind a bottle of vodka from a previous stay could expose you to claims if the next guest (or worse, a minor) gets hurt.
Most standard Homeowner’s, Landlord policies, and even commercial insurance options have different variations of exclusions for liquor liability, potentially leaving you unprotected if alcohol leads to injury, accidents, or third-party property damage.
That’s why Proper Insurance broadened our commercial policy form to include Liquor Liability coverage automatically in our comprehensive, custom-penned protection for short-term rental owners and Airbnb hosts.
Why It Matters: Alcohol and Liability Don’t Mix Without the Right Coverage
People drink on vacation, even guests who don’t usually drink at home may indulge while staying at your property. Whether it’s a bottle of local bourbon or a leftover six-pack from the last group, alcohol and vacation rentals often go hand in hand — and that means increased risk.
If your policy excludes or limits liquor-related incidents — as most standard policies do — any accident or incident involving alcohol during a guest’s stay can leave you, as the owner/host of the property, exposed.
That means if a guest is injured, causes property damage, or an alcohol-fueled incident occurs at your property, you could be responsible for every legal cost, including attorney fees, court appearances, and potential settlements.
With Proper Insurance, Liquor Liability is included as part of your policy. That means:
- We show up for you—even before negligence is determined.
- We cover your legal defense costs from the moment a lawsuit is filed.
- You’re not left footing the bill alone if things escalate, and you’re found negligent.
Legal fees alone can devastate a business. Having Liquor Liability coverage built in is about more than just risk transfer — it’s peace of mind that you’re not facing vacation consequences of your guests alone.
Why Airbnb Hosts Need Liquor Liability Coverage
When alcohol is involved, even if you didn’t pour the drink or plan the party, you can still be held responsible for what happens at your property.
That’s because liability doesn’t just follow who drank — it often follows who furnished the alcohol, or who controlled the environment where it was consumed. If a guest is injured, injures someone else, or causes damage after consuming alcohol at your short-term rental, you could be found negligent simply for providing the setting where it occurred or furnishing the alcohol.
In many cases, courts look at who controlled the environment where the incident happened, not just who brought the booze. As the short-term rental host, you’re running a business operation, which means you’re responsible for providing a safe space and mitigating foreseeable risks, regardless of who brought the alcohol.
So, if a guest drinks their own wine or beer at your property or the beverages you provided, and:
- Falls off a deck without a railing
- Trips over a poorly lit staircase
- Gets into a golf cart you provide and crashes
- Starts a fire at your fire pit and damages a neighbor’s property
- Starts a fight after a noise complaint by a neighbor
You could still be sued because you hosted the environment where it happened. And if your policy excludes liquor liability, it could decline to defend you, claiming alcohol was a factor in the injury or damage.
What is Proper’s Liquor Enhancement?
Proper Insurance provides specialized coverage explicitly tailored for Airbnb hosts and short-term rental property owners. One key element of our comprehensive policy is our Liquor Liability Enhancement—meaning we include protection for alcohol-related incidents because we understand the real risks you face as a host when guests consume alcohol, something every other policy we’ve reviewed (and we’ve reviewed a lot) leaves out.
Host Liquor Liability Protection: Comprehensive coverage for scenarios where you provide alcohol as part of the guest experience, whether complimentary wine, stocked minibars, welcoming champagne, or accidental oversight of leftover alcoholic beverages.
Vacation Mode Activated—So Is the Risk
People drink more on vacation, exponentially raising the overall risk of something going wrong—especially in an unfamiliar place. When guests are out of their routine and in an environment they don’t know well, alcohol can quickly amplify risks like accidental injuries, property damage, or other regrettable incidents. In fact, one in four adults admit to doing something they regret after drinking on vacation.
A 2021 study of 92 million travelers reported that 36% consumed more than three alcoholic drinks per day—with over 22 million reporting an average of six drinks daily. With Proper’s specialized Liquor Liability coverage, you can help protect your property, revenue, and liability, providing peace of mind when your guests indulge.
Liquor Liability Claims Can Cost Airbnb Hosts Thousands—Are You Covered?
Without specialized Liquor Liability insurance, even a minor alcohol-related incident can rapidly escalate into serious financial exposure. Alcohol-related property damage or lawsuits can lead to costly legal fees, settlements, and rental income loss.
Proper Insurance’s specialized Liquor Liability coverage ensures your Airbnb remains protected from these significant financial risks. While Proper Insurance provides the broadest policy language available when it comes to Liquor Liability, please note that coverage for alcohol-related claims can be denied if you are required to have a license to SELL or FURNISH alcohol. Check your local state requirements before providing beverages to guests.
Frequently Asked Questions: Liquor Liability Coverage from Proper Insurance
Why do guests leave behind beer and alcohol after a stay?
Vacation behavior is different — guests often buy more than they need, try new drinks, or bring alcohol with them to enjoy during their stay. When it’s time to check out, they may not want to travel with open containers or leftover bottles, so they leave them behind.
While it may seem harmless, those leftovers can expose you to liability — especially if they’re missed during cleaning and consumed by future guests. It’s a small detail that can lead to big financial consequences if your insurance doesn’t include Liquor Liability coverage.
How much does liquor liability insurance cost?
Liquor liability insurance from Proper is automatically included within your comprehensive policy. The Proper policy was custom penned to address the vast risks of short-term renting and was designed to completely replace inadequate Homeowners and Landlord coverage with a one-of-a-kind Commercial Homeowners policy offering robust coverage for your property, liability and business revenue.
Does Homeowners insurance cover alcohol-related liability involving my guests at my short-term rental?
Generally, no. Standard Homeowners and Landlord policies typically exclude coverage for injuries or damages related to alcohol consumption from your Airbnb guests at your rental property—particularly if alcohol is provided or facilitated by the host. Proper Insurance specifically addresses these gaps, providing dedicated Liquor Liability coverage for Airbnb hosts
Does Airbnb’s Aircover include liquor liability protection?
Airbnb’s Host Liability Insurance has a long list of exclusions including many more that they do not release publicly. Without specialized insurance, hosts may be left fully financially responsible for alcohol-related guest injuries, property damages, or claims. Proper Insurance’s Liquor Liability policy bridges this critical gap, providing protection for hosts who accidentally or intentionally offer alcohol.
Can Airbnb hosts be sued for alcohol-related guest incidents?
Yes, Airbnb hosts can be sued over alcohol-related guest injuries, intoxicated guest-caused property damage, or even drunk-driving accidents linked to alcohol consumption at their rentals. Proper Insurance’s comprehensive Liquor Liability coverage protects your financial interests with coverage limits up to $1 million ($2M upgrade optional).
Do I need liquor liability coverage if i don’t provide alcohol at my Airbnb?
Absolutely. Even if your Airbnb operates as BYOB (bring-your-own-bottle), hosts can still be held liable for incidents involving guest alcohol consumption or accidentally furnishing liquor from oversight between guest stays. Proper Insurance covers you in both scenarios—whether you provide alcohol or guests bring their own—ensuring your Airbnb rental remains financially secure.
Should I provide alcohol at my short-term rental?
That’s up to you — but only if your insurance policy allows for it. Many standard policies exclude liquor-related incidents altogether, meaning you could be fully liable if something goes wrong. If you choose to provide alcohol, make sure your insurance includes Liquor Liability coverage.
Secure Your Airbnb Investment with Proper’s Comprehensive Coverage Today
Don’t wait until a costly alcohol-related incident occurs at your Airbnb. Proper Insurance’s specialized Liquor Liability Coverage ensures worry-free hosting, allowing you to safely offer alcohol-related amenities and experiences without exposing yourself to unnecessary financial risk.
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