Most states have a dram shop law to deter providers of alcoholic beverages (servers, liquor stores, bars, restaurants) who sell or serve alcoholic beverages under authority of a license or permit from selling or serving alcoholic beverages to obviously intoxicated individuals.

These laws generally eliminate any liability of servers, liquor stores, bars, and restaurants when a person to whom they sell or serve alcohol causes personal injury or property damage—whether in an automobile accident, a fight, or other incident—unless the person to whom they sell or serve alcohol is obviously intoxicated.

Laws regarding dram shop liability vary from state to state and are usually located in a state’s statutes.

In Colorado, dram shop laws are codified under Colorado Revised Statutes section 12-47-801. These laws impose liability on licensed establishments, such as bars, restaurants, and liquor stores, for selling or serving alcohol to visibly intoxicated individuals or to minors, if the consumption of alcohol is a proximate cause of injuries or damages inflicted by the intoxicated person or minor. The statute allows for a civil action to be brought by the injured party or their estate against the alcohol vendor. However, there are limits to the damages that can be recovered, and claims must be filed within a certain time frame after the injury or damage occurs. It is important for establishments that serve or sell alcohol to be aware of these regulations to mitigate the risk of liability. An attorney can provide specific guidance on compliance with Colorado's dram shop laws and represent parties in related legal proceedings.