I leave a complimentary bottle of red wine for every check-in as a “Superhost” touch. Last month, a guest drank the whole bottle, tripped down the stairs, and is now suing me for $100,000, claiming I “furnished alcohol to an intoxicated person.” My insurance agent says my “Host Liquor Liability” coverage might not apply because I supplied the alcohol directly rather than just allowing them to drink their own.
Key Takeaways
- Host Liquor vs. Liquor Liability: “Host Liquor” covers you if guests drink their own booze. If you provide the alcohol (gift basket, stocked fridge), you may need full “Liquor Liability” coverage, which is much harder to get.
- The “Furnishing” Trap: In many states, Dram Shop laws can hold you liable if you supply alcohol that leads to an injury, even in a private home setting.
- AirCover’s Stance: AirCover generally excludes claims related to the sale or commercial distribution of alcohol. A free bottle is a grey area, but adjusters often argue it’s part of the “commercial package” you sold (the booking).
- Vending/Honor Bars: If you charge for the alcohol (e.g., a minibar), you are 100% acting as an unlicensed bar. Coverage is void.
The “Why” (The Trap)
The trap is “Furnishing Alcohol.”
Standard homeowner policies usually have a “Host Liquor Liability” clause that protects you during a dinner party. But when you are a business (Airbnb), providing alcohol can be seen as a commercial transaction. If the guest is already drunk when they arrive and you give them more (even via a welcome basket), you are liable.
The Investigation: I Called Them
- Proper Insurance: I asked specifically about the “Welcome Bottle of Wine.” They confirmed their commercial policy includes Liquor Liability for complimentary alcohol. They do not cover it if you sell the alcohol without a liquor license.
- State Farm: The agent said, “If you are running a business, the Host Liquor coverage on your home policy does not apply.” They viewed the wine as a business perk, creating a gap.
- Airbnb AirCover: The terms exclude liability where a “license is required.” Providing free alcohol generally doesn’t require a license, but if a lawsuit claims you were negligent in supplying it, AirCover’s defense is not guaranteed.
Comparison Table: Alcohol Liability
| Feature | Proper / Commercial STR | Standard Homeowner | Airbnb AirCover |
| Guest BYOB | Covered | Covered (Host Liquor) | Covered |
| Host Provides (Free) | Covered | Gray Area / Excluded | Gray Area |
| Host Sells (Minibar) | Excluded (Needs License) | Excluded | Excluded |
| Dram Shop Defense | YES | NO | NO |
[IMAGE: Screenshot of a policy exclusion reading ‘Exclusion: Liability arising from the business of manufacturing, distributing, selling, or serving alcoholic beverages’]
Step-by-Step Action Plan
- Stop the Wine Gifts: It sounds harsh, but in 2026, the liability isn’t worth the $15 bottle. Switch to local chocolates or coffee.
- If You Must Gift: Leave a coupon for a local winery instead. Let the winery take the liability for serving them.
- Check “Host Liquor” Definition: Read your policy. If it says “arising out of a business,” and you are taking money for the room, you have no coverage.
- Secure Commercial CGL: If providing alcohol is central to your brand (e.g., a vineyard stay), you absolutely need a Commercial General Liability policy that explicitly includes Liquor Liability.
FAQ
Can I leave beer in the fridge?
If it’s left over from a previous guest? Throw it out. If you bought it? You are “furnishing” it. The risk is yours.
What if the guest is underage?
Strict liability. If a 19-year-old checks in and drinks your gift wine and crashes their car, you are getting sued and you will lose.
Does a waiver help?
No. You cannot waive liability for serving alcohol to minors or intoxicated persons. It’s against public policy.