Many businesses host company parties periodically, and alcohol is served at some of these parties. If your business will be offering alcoholic beverages at a company-sponsored party, the business probably should get liquor liability insurance for the event. Here’s why.
When Hosting a Company Party, Does My Business Need Liquor Liability Insurance?
Alcohol-Related Incidents Can Result in Lawsuits
Whenever alcohol is served, someone may become too inebriated and become involved in an alcohol-related incident. They might fall and injure themselves, or they may start a fisticuff with another person. In some of the most tragic incidents, an inebriated individual may get behind the wheel and cause an accident.
If something like this occurs, multiple parties might be held liable and sued. The person who became too inebriated and directly caused the incident may be held responsible for obvious reasons. In addition to them, any person or organization that allowed them to become drunk may also be held responsible. At a company party, this could include:
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A catering company that made the beverages available
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A bartender or server who actually gave out the beverages
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The property owner of the space where the party is held
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The business that sponsored the party
While it might seem unfair to hold these other people responsible, there’s are precedents where these people and organizations were found at least partially responsible for allowing someone to become overly inebriated.
Thus, your business could be sued if there are any alcohol-related incidents that result in injuries or property damage at your company party. Even if a lawsuit ultimately is unsuccessful, merely defending your business against a suit can result in expensive legal fees.
General Liability Insurance Excludes Alcohol-Related Incidents
General liability insurance might provide coverage against some types of incidents, such as trip-and-fall injuries. Most general liability policies, however, exclude all alcohol-related incidents from their protections. Some accidents that might be covered if the persons involved are sober may no longer be covered by general liability insurance once people start drinking at a company party.
Get Liquor Liability Insurance for Your Business
Therefore, you probably shouldn’t rely on your business’ standard general liability insurance to cover any lawsuits that result from alcohol-related incidents at a company party. Your business likely needs liquor liability insurance.
In general, liquor liability policies help protect people and/or businesses from potential alcohol-related lawsuits. If your business is named in a covered suit, a liquor liability policy will likely help pay any legal fees, settlements and judgements associated with the suit.
Some business owners are hesitant to purchase a liquor liability policy because they think it’ll be too expensive for a single company party, but highly affordable coverage is available.
Many insurance companies offer policies with short effective periods, with some periods being as short as a single day. Getting a policy for only when your company is hosting a party keeps the premiums quite reasonable.
Require Others to Carry Liquor Liability Coverage
You might further protect your business by requiring any company that’s providing alcohol at your company party to carry their own liquor liability policy. Making sure any caterers, servers or bartenders who are offering beverages reduces the risk that your business is sued because it’s the only organization that has coverage to pay out a major claim. If others are covered and something happens, they may be sued and pay all damages before your business is.
Find a Liquor Liability Policy for Your Business
For help finding a liquor liability policy that meets your business’ needs, contact the independent insurance agents at World Insurance Associates. Our agents have helped many businesses get liquor liability insurance, and they can assist your business regardless of whether you want a traditional policy or one that lasts just for a few days.