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Social Host Liability

Misc_WarningTapeBe a Responsible Host When It Comes to Serving Alcohol at Parties

Whether you are hosting a Super Bowl party or greeting the New Year with friends in your home, 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. Social host liability, also known as “Dram Shop Liability” laws vary widely from state to state, but 43 states have them on the books. 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 speak with your insurance agent or company representative about 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.

How to Protect Yourself and Your Guests

If you plan to serve alcohol at a party the I.I.I. offers the following tips to promote safe alcohol consumption and reduce your social host liability exposure:

  • Make sure you understand your state laws. Before sending out party invitations, familiarize yourself with your state’s social host liability laws. These laws vary widely from state to state. Some states do not impose any liability on social hosts. Others limit liability to injuries that occur on the host’s premises. Some extend the host’s liability to injuries that occur anywhere a guest who has consumed alcohol goes. Many states have laws that pertain specifically to furnishing alcohol to minors.
  • 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.
  • Hire a professional bartender. Most bartenders are trained to recognize signs of intoxication and are better able to limit consumption by partygoers.
  • 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.

Source: Insurance Information Institute, “Social Host Liability” http://www.iii.org website. Accessed September 11, 2014. http://www.iii.org/article/social-host-liability

© Copyright 2014. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

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Coverage For Jewelry & Other Valuables

Misc_Jewelry2A standard homeowners policy includes coverage for jewelry and other precious items such as watches and furs. These items are covered for losses caused by all the perils included in your policy such as fire, windstorm, theft and vandalism.

However, there are special limits of liability for certain items, meaning that the insurer will not pay more than the amount specified in the policy. One important limit is for the theft of jewelry. To keep coverage affordable because jewelry can be easily stolen, the standard policy has a relatively low limit of liability for theft, generally $1,500.

If you own valuable jewelry or other items that would be difficult to replace, there are two ways you can increase coverage: by raising the limit of liability or “scheduling” your individual pieces through the purchase of “floater” policies. Raising the limit of liability is the cheapest option; however, there may be a limit on the amount you can claim for the loss of any individual piece, say $2,000, when the overall limit is $5,000.

Scheduling each piece or item may cost more in premiums, but it offers broader protection because the floater covers losses of any type, including accidental losses—such as dropping your ring down the drain of the kitchen sink or leaving an expensive watch in a hotel room—that your homeowners insurance policy will not cover. Before purchasing a floater, the items covered must be professionally appraised. The cost of this service varies depending on where you live.

Source: Insurance Information Institute, “Coverage for Jewelry and Other Valuables” http://www.iii.org website. Accessed November 30, 2015. http://www.iii.org/articles/do-i-need-special-coverage-for-jewelry-and-other-valuables.html

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

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Holiday Parties & Liquor Liability

Events-Holiday_HolidayPartyWhy does the “insurance guy” have to be a party pooper?

Did you know that many states hold you or your company liable for accidents and injuries caused by party attendees having too much to drink. Not only that, in many cases, your company has insufficient insurance or no coverage under existing insurance for such liability.

What to do? Implement one or more of the following steps and ensure everyone has a safe and healthy holiday season:

  • Do not serve alcohol at company parties and adopt a zero-tolerance policy for consumption on company premises. If zero tolerance is too harsh, consider a “key bowl” presided over by a sober third-party – perhaps a security guard or police officer.If the employee is impaired the third-party calls a cab and the car keys stay in the bowl.
  • If the event is off site, make sure the venue has liquor liability insurance. Ask if it covers your company or have them add your company as an additional insured for the party.
  • Limit party attendance to employees. Significant others can be under age – who will check?
  • Off site venues for parties should be with a cash bar if a bar is present. Another option is a “ticket” system where each employee gets one or two tickets for free drinks and the remainder is cash.
  • Consider renting transportation for all employees for the event. It is expensive, but cheaper than the loss of an employee.

No matter what, your company should have a designated person/s present who understands the potential liability, the rules and the ability to call an employee a cab on the company tab if necessary.

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

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IN: Preparing For The Coming Holiday Season

Dear Valued Customer,

In this issue of the “——————” we focus on how to ensure everyone has a safe and healthy holiday season.

Sorry to be a party pooper, but did you know you or your company can be held liable for accidents and injuries caused by party attendees having too much to drink? Read on to learn what to do to protect yourself…like obtaining liquor liability insurance! There’s more pertinent holiday information including insurance for jewelry you may be giving, or be given at this time of the year.

With our best wishes for a fun and safe holiday season. We appreciate your continued business and look forward to serving you.

Kind regards,