With the holiday season upon us, will you be throwing a party or celebrating a special occasion? Do you plan on serving alcohol? If yes, while we wait for our invitation to arrive, let the Cade team discuss the liability exposure that comes with these events, and how to take steps to prevent an incident. Serving alcohol or facilitating its consumption beyond intoxication might result in your being held responsible in a liability claim where alcohol is a contributing factor.
What’s the Liability?
As a personal Host, you do have potential liability for bodily injury or property damage to third parties which arises out of the negligent serving or distribution of alcohol at your party, be it a small backyard BBQ setting, or a holiday gathering. The insurance provided by most home/condo/tenants insurance policies may protect you from a liability claim arising from a private social gathering in your home, but you should confirm this with your broker/agent first.
As a business or non-profit organization, it is very important that you review your insurance protection first with your broker or agent if you have any plans to host such an event. While some commercial insurance policies are able to accommodate an event involving liquor, additional information may be required to endorse the policy accordingly. In some cases, host liquor liability is expressly excluded and must be arranged by your Broker for your function.
Liability for claims arising out of social hosting can arise from many different avenues, including:
- Server – Serving people past the point of intoxication;
- Occupier – Whether you own the space or are temporarily renting the venue, you have responsibility for protecting the people on premises from harm;
- Employer – You have a responsibility for your employees at staff functions.
Special Occasion Permit
Functions with more attendees, ticketed events, or those involving the sale of alcohol may require the purchase of a Special Occasions Permit. SOPs allow for the sale and service of alcohol on special occasions, and are required any time alcohol is offered for sale or is served anywhere other than in a licensed establishment (eg. bar or restaurant), or in a private place (eg. office or home). Special Occasion Permits are available from the Alcohol and Gaming Commission of Ontario (link) and are reviewed and approved based on the nature of your function.
Party Alcohol Liability Insurance
Party Alcohol Liability insurance is a low-cost policy, designed to provide protection when lawsuits are brought against individuals, organizations, or companies who host events with alcohol service. This is typically provided when you are in a situation where an SOP is required, such as weddings, stag & does, banquets, dances, socials, cocktail/Holiday parties, etc. Contact your Broker to request a quote.
Risk Management & Avoiding Issues
Here’s some advice for curtailing over-consumption of alcohol:
- Be aware of the designated drivers in attendance. If other guests are unable to drive safely, the DDs may be able to help
- Provide non-alcoholic drink and food options to all guests throughout the party
- Implement a cut-off time for alcohol service, even at private functions. For example: stop serving alcohol some time before you expect your guests will leave. You may also serve other drinks, like coffee or tea, and encourage guests to have water.
- Be prepared with excess cash to offer to pay for guests’ cab rides if necessary. You may also have extra space set up in your home to house last-minute overnight guests.
- Have no reservations about asking for someone’s keys if you suspect they are too intoxicated to drive.
- If alcohol service is being provided at a larger function, or one involving an SOP, ensure that servers are Smart Serve certified.
- The legalization of cannabis adds an additional layer of complexity, as guests may mix intoxicants. Keep a keen eye on your attendees to watch for over-consumption.
What To Do In A Claim
In the event of a claim, here’s what to do:
- Contact your representative at Cade as soon as possible.
- Make a note of all the relevant details of the incident, including the date, time, witnesses’ names and contact information.
- Don’t confess liability; always direct any discussions with the claimant to your insurer for further comment.
Whatever the occasion, be wary of how much your attendees are drinking. It is your responsibility to ensure your guests are having a good time in a safe manner. Take the lead on educating yourself and your team about what you’re responsible for when holding a party. Be prepared with several methods of getting your guests home safely if they are too intoxicated to drive themselves and others.
Get in touch with us today at clientservices@cadeinsurance.ca to discuss how to prepare for your next event.
