While many states have varying policies, if you own an establishment that serves alcohol, yes, you need to have liquor liability insurance. Even if your restaurant only serves beer and wine, you still need to be protected. You have no way of knowing how much alcohol a patron of your restaurant had consumed before they arrived. They may have already passed the legal limit without you being aware. These people may also be on medication or other illegal drugs that mix with alcohol and have a diverse effect. Even if you only served them one or two bottles of beer, their intoxication levels may show much higher.