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DC bill seeks $500,000 cap on non-economic damages in dram shop cases
The legislation also orders a 180-day review of whether minimum liquor liability coverage would lower premiums for nightlife venues in Washington, DC.
Washington, DC lawmakers introduced a bill aimed at limiting liquor liability risk for nightlife venues, pairing a damages cap with a regulator study on pricing. The measure, titled the Dram Shop Clarification and Liquor Liability Insurance Amendment Act of 2026, was introduced on July 14, 2026, and would change parts of the District’s alcohol sales code.
The bill would cap non-economic damages in qualifying dram shop actions, directing that total liability for such losses would not exceed $500,000. It defines non-economic damages as harder-to-quantify losses, such as pain and suffering, and sets the $500,000 level to increase starting January 1, 2037, then every 10 years after, by $50,000.
In parallel, the bill would require the Department of Insurance, Securities and Banking to complete an analysis within 180 days of the act taking effect. The review would evaluate whether minimum coverage rules would decrease existing liquor liability insurance premiums for nightlife establishments in the District, and it would compare how other states’ minimum-coverage frameworks affect premiums.
The proposal does not mandate that venues purchase minimum coverage, instead instructing the regulator to examine the issue. The bill still must clear the Council’s committee process, pass a Council vote, and could face a Mayoral veto, along with a 30-day congressional review before it could become law.