The Dram Shop Clarification and Liquor Liability Insurance Amendment Act of 2026 aims to amend Title 25 of the District of Columbia Official Code by capping non-economic damages in civil actions related to the sale of alcoholic beverages to minors and intoxicated individuals. Specifically, the bill introduces a new provision that limits total liability for non-economic damages to $500,000, with an increase of $50,000 every ten years starting from January 1, 2037. This change is intended to provide clarity and predictability for establishments involved in such civil actions.

Additionally, the bill amends the Department of Insurance and Securities Regulation Establishment Act of 1996 by requiring the Department of Insurance, Securities and Banking to conduct an analysis within 180 days of the bill's enactment. This analysis will assess whether mandating minimum liquor liability insurance coverage could lead to lower insurance premiums for nightlife establishments in the District, while also comparing the impact of similar requirements in other states.