19 Dec 2019
pouring glasses of champagne

Protecting your business from liquor liability issues.

If you are planning on hosting a company holiday party, then there’s a lot that you need to coordinate.  However, if you are planning on serving alcohol at the event, then one step that you cannot afford to overlook is securing host liquor liability insurance.  Here’s what you need to know about this special form of coverage.

What is Host Liquor Liability Insurance?

Businesses that allow alcohol to be consumed onsite or at an event they are hosting are liable for the damage or injuries that intoxicated individuals cause following the event.  Business owners can protect themselves from this risk by securing host liquor liability insurance.  This type of insurance offers coverage for any third-party damages or injuries caused by intoxicated employees or party guests, ensuring that your business will not have to pay for these expenses out-of-pocket.

Do I Need This Coverage?

Some states have enacted laws that hold party hosts liable for the damages caused by an inebriated party-goers.  If your business is located on one of these states, then you absolutely cannot afford to skip out on host liquor liability.  However, even if you don’t operate a business within these states, you are still highly encouraged to carry host liquor liability insurance.  This is because an injured party can still sue you for the damages an intoxicated employee causes following a company party.  Host liquor liability insurance will cover your legal fees and minimize the negative impact that such a case has on your company’s reputation.

Other Ways to Prevent Liquor Liability Issues at Your Company Party

  • If there will be alcohol at your party, confiscate your guests’ car keys as they arrive. This will ensure that intoxicated guests do not slip away and attempt to drive without you realizing it.
  • Limit your own alcohol consumption and keep an eye on your guests. Cut off anyone who seems to be pushing their limits and watch to make sure that they aren’t lashing out at others.  Obviously, you should not give them their keys and allow them to drive home.
  • Encourage the use of designated drivers or be ready to call a cab company or a ridesharing service such as Uber or Lyft.
  • Make sure that you serve plenty of non-alcoholic beverages and plenty of food to ensure that people do not drink on an empty stomach.

This is what you need to know about host liquor liability insurance and the other things you can do to lower your risk for an alcohol-related liability claim against your business.  Looking for other insurance to protect your business as it hosts a company holiday party?  Then contact the experts at Patterson & Associates in Richardson, Texas, for assistance with your commercial coverage needs today.