If you’re planning on raising a glass at your New Year’s festivities, you may want to purchase non-alcoholic beverages. If you are dead set on having alcohol, it may be wise to check your association insurance coverage for such libations. No liability coverage for liquor in your policy? It may be time to get out the Welch’s instead of whiskey.
Why do I need insurance to serve alcohol?
Although the alcohol at an association party or event is served with good intentions, what you may not realize is that should an alcohol-related incident occur, you may take the blame. Along with the intoxicated individual, your association could possibly be sued for the damage to property or personal injury incurred.
What does liquor liability insurance cover?
Assuming you aren’t charging your guests for their drinks, adding host liquor liability to your commercial general liability policy will cover claims for property damage or bodily injury caused by an intoxicated person at the event. If you plan to sell alcoholic beverages, you may purchase additional coverage for that particular event. Luckily, obtaining liquor liability coverage is generally quite affordable, and temporary policies can cover you for 1 to 30 days with relatively small expense.
Party Tips
Even with liquor liability included in your policy, it’s always a good idea to be cautious and use common sense to reduce the possibility for alcohol-related incidents and avoid potential liability.
We recommend the following:
- Don’t serve hard liquor – stick to beer and wine for your guests.
- Enforce a two-drink limit and stop serving guest who’ve had too much.
- Never serve alcohol to minors.
- If the event is off-site, provide transportation home when needed.
Next Steps
Throwing parties and organizing events for your association is a great way to bring friends and neighbors together and promote a greater sense of community. As you plan your New Year’s bash or other association-sponsored events, take a look at your insurance policy before adding alcohol to your shopping list.
You may decide that the ability to serve alcohol at association functions without the risk of litigation is worth the minimal cost of adding liquor liability insurance to your policy. Let us at Blue Lime Insurance help make sure you’re covered so you can plan a successful, fun, and worry-free event.
