Indiana’s Dram Shop Law: Can You Sue a Bar After a Drunk Driving Accident?

April 28, 2026

• In a car accident with a drunk driver, the establishment serving the alcohol can potentially be found liable.
• The Indiana Dram Shop Law states that for the bar to be liable, it would have to knowingly serve someone who is visibly and clearly intoxicated.
• That can be hard to prove, but having an experienced law firm can help you make the case.

One of the scariest things you can go through is a car accident. The sudden shock is compounded by the uncertainty of what is to come. Both of these aspects are multiplied when you realize the other driver is impaired. He or she is often erratic and angry and usually not at all helpful at the scene. And down the road, you don’t know how the driver’s impairment might impact your eventual settlement.

Thanks to Indiana’s Dram Shop Law, however, your case might involve more than just the driver. In some cases, the establishment that served the driver alcohol can also share liability for the accident.

If you’re asking if you can sue a bar after a drunk driving accident, the answer is yes. But it is important to quickly find experienced Indiana car accident lawyers so that your case can precede as expeditiously as possible.

Understanding Indiana’s Dram Shop Law

Your first question might be: what, exactly, is a Dram Shop? The term comes from England, where alcohol was sold in units of 1/8^th of a fluid ounce, a measurement called a dram. Now it refers to any bar or pub that sells alcohol to drink on site.

It’s an old-fashioned legalistic term that you’ll rarely hear outside the context of Dram Shop Law. But if you are in a drunk driving accident, it’s a term that will suddenly become important.

How Indiana’s Dram Shop Law Works

You’re coming home from work right when someone is driving away from the pub district in Broad Ripple, runs a red light, and crashes into you. The fault is pretty clear. And, you might think, the fault of the bar the driver left is also pretty clear. It is responsible for the driver getting drunk.

But Indiana’s Dram Shop Law isn’t as cut and dried as that.

According to Indiana Code Title 7.1-5-10-15.5, it is possible to sue a bar after a drunk driving accident. But a bar that serves alcohol isn’t automatically liable, even if the person left the bar drunk. Indiana’s Dram Shop Law is clear that the bar is only liable if:

1. the person furnishing the alcoholic beverage had actual knowledge that the person to whom the alcoholic beverage was furnished was visibly intoxicated at the time the alcoholic beverage was furnished; and
2. the intoxication of the person to whom the alcoholic beverage was furnished was a proximate cause of the death, injury, or damage alleged in the complaint.

 Now, as you read this, you are probably thinking that there is a level of subjectivity to this law, and that is correct. It is difficult to determine that the person serving the alcohol had absolute knowledge that a person being served was intoxicated. But there are some methods for deciding that.

How To Determine If a Dram Shop Bears Responsibility for a Drunk Driving Accident

How do you know if a person is visibly intoxicated? Some of the signs include slurred speech, erratic behavior, and falling asleep/passing out/fading out at the bar. It is the duty of a dram shop to stop serving to someone in that state.

How is that proven? A police or private investigator will want to go over:

• Witness statements
• Video evidence
• Receipts (if the person bought an unusual amount of drinks)
• Sobriety tests

Remember though that the last two, while they seem to be more direct evidence, are not always conclusive on their own. After all, a person can fail a sobriety test while still appearing sober to a bartender. And receipts are not enough – someone can spend a lot of money buying rounds, and the bartender might not know how much the person buying them drinks.

The law does not cover what a bartender should have known, even if you think it is obvious. It has to be proven that that the bartender knew the person was drunk and served him or her anyway.

The second part of this law is proving that the person’s intoxication at the bar led directly to the crash. If a person is clearly overserved at one place, but doesn’t get into an accident for a few hours, it becomes harder to establish liability.

Collecting evidence can be tricky. It’s why you need to act fast.

The Importance of Hiring Drunk Driving Accident Lawyers Who Understand the Law

No bar wants to be held liable for an accident. After all, its business is selling alcohol, and cutting someone off can cost it money. But it is the bar’s responsibility to not serve someone who is visibly intoxicated.

Evidence doesn’t last forever, especially when a bar would prefer it not to. That’s why you need to act quickly and work with an Indiana car accident law firm that understands how to collect that evidence and how to work with the police to make sure it is an admissible part of your case.

The bar probably won’t be the only party at fault. But knowing if it violated its duty will impact your case. Using an Indiana car accident attorney who understands the Dram Shop Law can uncover all the liable parties, which can potentially increase your settlement and get you the justice you deserve.

Reach Out to Our Experienced Indiana Drunk Driving Accident Attorneys

When you’re in a drunk driving accident in Indiana, you’ll need someone who can assess liability at all levels, like the Indiana car accident lawyers at Hensley Legal Group, PC, a dedicated Indiana personal injury law firm whose experienced attorneys have been fighting on behalf of the wrongfully injured since 1998.

Simply call us at (317) 472-3333, chat with us online, or fill out our contact form now for a free consultation with a knowledgeable Indiana car accident attorney.