Keep the Holiday Office Party from Being a Liability Disaster

Keep the Holiday Office Party from Being a Liability Disaster

Many offices gather over the holiday season to celebrate the passing year and look forward to the coming year of business.

For business owners who are not aware, a Commercial General Liability (CGL) policy excludes coverage for liquor liability, but only in the event the insured is in the business of selling, providing or making alcoholic beverages. Should an event make available alcohol minus a charge, it could be stated that the insured is not in the business of selling or providing.

If you’re a business owner hosting a party this holiday season that involves liquor, keep in mind that a number of businesses have determined that hiring a bartender will decrease their risk of being held liable. By doing such, it provides the benefit of another party being held mostly responsible and decreasing the amount that the company may be required to pay.

Business owners should keep in mind that an important factor is acquiring a Certificate of Insurance from the bartender to confirm that they can produce an adequate level of liquor liability insurance. It is important to acquire the certificate before the event.

With a general liability insurance policy, protection is there to cover bodily injury if an employee or guest is injured at an office party. Such a policy would cover expenses for: Medical care costs, loss of services and court-awarded compensation for deaths coming out of the injury.

When it comes to property damage during an office party, keep in mind that an employee’s actions may prohibit the property owner from being able to use it.

If that is the case, your business liability insurance coverage compensates for: Physical damage to the property, or loss of use of the property. Keep in mind that property damage liability coverage many times will not cover damage done to client property in your possession.

Finally, it is important to note that if an employee would sue you over an injury while involved in a job-related function, your commercial general liability policy would not cover the damages. For this kind of coverage, a workers’ compensation policy is required.

The best solution is to talk these matters over with your insurance agent. By doing so, the agent can determine if you have to acquire special event coverage.

The talk might also assist you in decreasing potential lawsuits that can result from your special event.

The holidays are a time to celebrate, not to be dealing with legal headaches.