“Dram Shop” laws (a law that makes a business liable if they serve a patron who is clearly intoxicated) exist in forty-three states (including Colorado) and make it even easier for you to be sued after one of your overserved patrons causes harm to someone else. You could have trouble if patrons get into a physical altercation on your property or at your event after drinking on site; you could be sued by one or both parties if injuries have occurred.

Any business that sells or serves alcoholic beverages, including restaurants, nightclubs, and bars, can be held liable for damages or injuries caused by intoxicated patrons. This can include damages that result from fights, careless behavior or even automobile accidents. While it may seem logical to place the blame fully on the individual who perpetrated these acts, the establishments that allowed them to become intoxicated are also held largely liable and can be sued for exorbitant sums of money, particularly if resultant injuries are severe or fatal.