Why 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.