Special occasions and gatherings with family and friends bring laughter and fun—often accompanied by the serving of alcoholic beverages. If you’re someone who enjoys hosting people for these gatherings and alcohol is served, you may want to consider getting an umbrella policy that includes coverage for host liquor liability.
What is host liquor liability insurance?
Host liquor liability insurance helps protect individuals who host events where alcohol is served from claims related to injuries or property damage caused by intoxicated guests. It can also protect businesses that may serve alcohol but that is not their primary function.
It is important to note that host liquor liability provides coverage for the host when guests are serving themselves alcohol versus when a hired bartender is serving the drinks (provided the bartender is also insured).
What are the potential risks?
If a guest is consuming alcohol on your property, you could be held liable for:
- Guest injuries – if someone is injured on your property
- Traffic accidents – if a guest who’s been drinking decides to drive home, and they cause an accident
- Serving minors and/or intoxicated people – serving alcohol to someone not of legal drinking age or to an intoxicated person could have criminal implications
- Property damage – guests may damage your property or belongings
Note: Various jurisdictions have different laws, so be sure to understand them based on where your property is located.
Scenario:
You host a fun party but one of your guests causes a car accident on their way home. You didn’t serve this person alcohol, but they were drinking in your house. Because of this, you could be held accountable for their mistake.
Be prepared
There are ways you can help minimize your risk and keep hosting those fabulous gatherings at your home.
Hire a bartending service
One way to reduce your risk when hosting a party is to hire a bartender through a service that carries insurance. When you hire a service, they should have some form of insurance in place. This removes the risk from you, as any liability is now on the bartending service since they’re the ones serving the alcohol.
For those of you who host more of an “open house/BYOB” type of event, you still have some risk, as allowing guests to consume alcohol under your roof makes you liable for the risks noted above in the eyes of the law.
Have the right insurance in place
An umbrella policy that includes host liquor liability can help cover all these risks and much more. A personal umbrella policy provides additional protection on top of your existing policies, not only monetarily, but also in the form of broader coverage (host liquor liability) outside the initial scope of what your policies will cover. They are also typically considered affordable policies. For example, a $1million umbrella policy typically costs less than $200 per year and gives you an extra layer of protection for many different scenarios.
Cheers to protecting yourself – and having fun
With the right insurance and plans in place, it’s easy to keep the fun times going while still protecting yourself from potential risks associated with serving alcohol on your property. Work with an experienced advisor to help you find the right insurance for your individual needs.
Connect with us to learn more about host liquor liability protection.
This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. The Baldwin Insurance Group Holdings, LLC (“The Baldwin Group”), its affiliates, and subsidiaries do not guarantee that this information is, or can be relied on for, compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability. This publication is not intended to be legal, underwriting, or any other type of professional advice. The Baldwin Group does not guarantee any particular outcome and makes no commitment to update any information herein or remove any items that are no longer accurate or complete. Furthermore, The Baldwin Group does not assume any liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Persons requiring advice should always consult an independent adviser.
