Now is the time of year for social gatherings, whether it’s a family holiday party or New Year’s Eve bash, if you are planning to serve alcohol at any type of party it is important to take steps to limit your liquor liability and make sure you have the proper insurance.
Social host liability, the legal term for the criminal and civil responsibility of a person who furnishes liquor to a guest, can have a serious impact on party throwers. Most of these laws also offer an injured person, such as the victim of a drunk driver, a method to sue the person who served the alcohol. There are circumstances under these laws where criminal charges may also apply.
While a social host is not liable for injuries sustained by a drunken guest (as they are also negligent), the host can be held liable for third parties, and may even be liable for passengers of the guest who have been injured in their car.
Before planning a party in your home, it is important to your homeowners coverage and any exclusions, conditions or limitations your policy might have for this kind of risk. Homeowners insurance usually provides some liquor liability coverage, but it is typically limited to $100,000 to $300,000, depending on the policy, which might not be enough.
Most importantly, whether you are hanging out with a small group of friends for cocktails or throwing a big family bash, remember that a good host is a responsible host, and takes steps to ensure guests get home safely if they have been drinking.
If you have any questions on how your homeowners policy will respond, please feel free to give our office a call.
How to Protect Yourself and Your Guests
- Consider venues other than your home for the party. Hosting your party at a restaurant or bar with a liquor license, rather than at your home, will help minimize liquor liability risks.
- Encourage guests to pick a designated driver who will refrain from drinking alcoholic beverages so that he or she can drive other guests home.
- Be a responsible host/hostess. Limit your own alcohol intake so that you will be better able to judge your guests’ sobriety.
- Offer non-alcoholic beverages and always serve food. Eating and drinking plenty of water, or other non-alcoholic beverages, can help counter the effects of alcohol.
- Do not pressure guests to drink or rush to refill their glasses when empty. And never serve alcohol to guests who are visibly intoxicated.
- Stop serving liquor toward the end of the evening. Switch to coffee, tea and soft drinks.
- If guests drink too much or seem too tired to drive home, call a cab, arrange a ride with a sober guest or have them sleep at your home.
- Encourage all your guests to wear seatbelts as they drive home. Studies show that seatbelts save lives.