Holiday party hosts are liable for drunks.
Position | YOUR LIFE |
If Grandma got run over by a reindeer, you had better hope the reindeer was not 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, Washington, D.C.
A social host's liability when serving alcohol to guests is no joking matter. Many courts have found noncommercial 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 noncommercial 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," warns 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 party, individuals should look to the liability portion of their homeowners' or renters' insurance policy for protection. Consumers regularly should review their liability limits to ensure they are covered adequately.
In a given year, many businesses typically host a holiday party. 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 an office party.
Businesses may want to take additional precautions as well--including limiting alcoholic beverages. Taking steps, such as instituting a cash bar--charging employees for drinks--in an effort to limit consumption may not always be the best solution...
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