Businesses host parties for a variety of reasons, including the holidays and organizational accomplishments. While these events are fun, team-building opportunities, they can create a number of risks for the hosting company. In fact, in the event that an employee is injured at the party or causes property damage, the employer is usually the one held responsible. This can lead to costly litigation and reputational harm that can affect a company for years.
To avoid major losses, it’s not only important for employers to secure the right insurance coverage for every individual risk, but to also have a thorough understanding of common holiday party exposures.
Alcohol
Anytime you provide alcohol to individuals in a non-commercial manner, you are considered a social host. This is important to note, as a social host may be responsible for the acts of their guests should their conduct create harm. These risks are compounded when alcohol is served, and employers may be liable for damages following a drunk driving or similar incident.
While the best way to reduce alcohol liability risks is to avoid serving it altogether, this isn’t always feasible. To promote the safety of your employees and guests at company-sponsored events, consider the following:
Food Exposures
Food is a staple of many company-sponsored events, and can actually be a useful way to keep party guest sober and limit alcohol-related liability (starchy foods can help reduce the absorption of alcohol). However, when serving food, there are a number of risks employers should consider.
For instance, employers need to be wary of potential food allergies. In the event that a guest gets sick from the food, they could sue the employer for negligence.
To help protect against this, employers should ask party guests to disclose any of their allergies, either in their RSVP or by contacting the event coordinator directly. In addition, you should specify what ingredients are in every food item, both on the menu and on display cards near the food itself.
For added protection against illnesses, it’s critical that employers promote safe food preparation and handling practices. Moreover, when working with a third-party provider, employers should do their due diligence to ensure they are securing reputable vendors.
Secure the Coverage You Need in Advance
Even if you take all the appropriate precautions, incidents can still occur. As such, it’s important for all organizations to secure adequate insurance.
Each business is different, and may require additional policies to account for all of their exposures. Contact your Alliant Insurance broker today to learn about your coverage options when it comes to hosting a party.