CELEBRATE THE HOLIDAYS RESPONSIBLY
Big “I” Advises Consumers, Employers on Party Protection
ALEXANDRIA, Va., Dec. 6, 2005—If Grandma got run over by a reindeer, you’d better hope the reindeer wasn’t drinking at your holiday party.
If a guest or third party is injured in an alcohol-related accident, and the drinking can be linked to your party, you could be held responsible. This includes paying medical bills, vehicle repair costs, lost time from work and, in the worst case, claims for wrongful death resulting in huge monetary settlements, according to the Independent Insurance Agents & Brokers of America (IIABA).
A social host’s liability when serving alcohol to guests is no joking matter. Many courts have found non-commercial hosts liable for the damages their party guests cause as a result of consuming alcohol and then driving motor vehicles, and several states have enacted statutes that can be interpreted as mandating non-commercial social host liability.
“Most of your partygoers will be worrying about what ‘black tie optional’ means and what kind of wine to bring, but as a host, you need to be aware of your responsibilities,” says Madelyn Flannagan, IIABA vice president for education and research. “Drunk driving is a major problem during this season. And serving up a little too much holiday cheer may lead to being served a lawsuit, or worse, if you’re not careful.”
When hosting a holiday party, individuals should look to the liability portion of their homeowners’ or renters’ insurance policy for protection if they are sued and found liable for an accident involving a guest who drank at their homes. Consumers should regularly review their liability coverage limits to ensure they are adequately covered should an accident occur.
Many businesses typically host a holiday party in a given year. Employers must make sure their comprehensive general liability (CGL) policies provide coverage for third- party liquor liability through a special endorsement, or they need to purchase special event coverage or a separate liquor liability policy before hosting a holiday office party.
Businesses may want to take additional precautions as well, including limiting alcoholic beverages. Taking steps, such as instituting a cash bar, may not ease the problem. Charging employees for alcoholic beverages in an effort to limit drinking parties hosted in the office or at the boss’ home may not always be the best solution for businesses, cautions Flannagan.
“It’s important for businesses to remember that once they charge a fee for alcohol, they have technically entered the alcohol sales business, even if only for one night,” says Flannagan. “That carries with it requirements for a liquor license and an array of special liability protection needs. It definitely does not let these employers off the hook.”
You can’t entirely eliminate risks, but planning ahead and learning your responsibilities as a host is the best defense. Purchasing a personal “umbrella” liability policy — providing $1 million or more in additional coverage over the limit of a standard homeowners’ or renters’ policy — may be a prudent move for the frequent party host, and can cost as little as $125 a year.
How to prevent holiday party accidents and protect yourself or your business:
· Limit your guest list to those you know.
· Host your party at a restaurant or bar that has a liquor license, rather than in a home or office.
· Provide filling food for guests and alternative non-alcoholic beverages.
· Schedule entertainment or activities that do not involve alcohol.
· Arrange transportation or overnight accommodations for those who should not drive.
· Stop serving alcohol at least one hour before the party is scheduled to end.
· Do not serve guests who are visibly intoxicated.
· Consider hiring an off-duty police officer to discreetly monitor guests’ sobriety or handle any alcohol-related problems as guests leave.
· Stay alert, always remembering your responsibilities as a host.
· Review your insurance policy with your agent before the event to ensure that you have the proper liability coverage.
Founded in 1896, the Big “I” is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of more than 300,000 agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life and health—as well as employee benefit plans and retirement products. Web address: www.independentagent.com.
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