What does dram shop liability mean in Georgia?

Georgia is one of the states with dram shop liability statutes, which means a third party injured by an intoxicated patron (for example, a drunk-driving accident victim) can sue the establishment that served the alcohol. The Georgia statute creates liability when the establishment knowingly served a patron who was already noticeably intoxicated or known to be under 21. Cases typically involve drunk-driving accidents where the injured third party traces the patron's last drink to the establishment. Defending these cases is expensive even when the establishment ultimately prevails, and judgments can be substantial. Liquor liability insurance is the primary financial defense. Operational defenses include strict ID checking, server training programs, BAC monitoring, refusing service to visibly intoxicated patrons, and documenting the refusal.