For licensed establishments in New York it’s effectively required, and your general liability policy excludes alcohol-related claims outright. Dram shop liability can attach when an intoxicated patron you served causes harm after leaving, which makes this the defining exposure in the industry.
Fraud is a crime
If your application contains purposefully misleading, absent, or inaccurate information, you could be charged with fraud. Your insurance carrier could potentially void your policy, or you could face civil or criminal charges or penalties.
Any person who knowingly and with intent to defraud any insurance company or other person, files an application for insurance or statement of claim containing any materially false information or conceals, for the purpose of misleading, information concerning any fact material thereto, commits a fraudulent act, which is a crime.
