Liquor Liability Insurance Policy Coverage: Is It Needed When Hosting a Company Party?

An office party is an excellent team-building event that can create more significant interaction among your staff and other vendors. But do the same concerns apply to nightclubs or other venues serving alcohol? Here’s what you need to know about liquor liability insurance policy coverage and how it can protect your business.

Alcohol-Related Incidents Can Result in Lawsuits

If you plan on serving alcohol at your office parties, you need liquor liability insurance policy coverage for numerous reasons. The most important reason is that serving liquor is responsible for keeping patrons under control. In some states, you can go to jail for doing alcohol to someone who has had too many drinks.

Even if you believe your workers are tame, serving alcohol creates the possibility of someone losing their cool while getting drunk. When a drunk person holding a broken glass becomes violent, the risk increases that one or more persons may get hurt.

Is your office prepared to deal with the consequences of alcohol? Remember that if someone has a complaint about serving drinks to intoxicated individuals, multiple people in charge of the party can be held responsible. Even a sponsor of the event can be sued as well for making the event possible.

Another risk involved with serving liquor at an office party is that an attendee can get drunk and lose their balance. People fall at parties all the time. But if a person doesn’t get back up, it can mean an expensive trip to the hospital. Liquor liability insurance will help prevent a sudden financial fiasco for your company. Even an unsuccessful lawsuit can be costly, so it makes sense to carry the right insurance.

General Liability Insurance Excludes Alcohol-Related Incidents

Some managers planning for an office party might think general liability insurance covers all legal issues, but that’s not true. You’ll need separate coverage, an endorsement, to fill in gaps that general liability insurance doesn’t cover, such as alcohol-related incidents. The reason general liability excludes alcohol risks is that not all businesses serve liquor.

Even though liquor liability insurance is not required by state law, it can solve many serious problems if something goes wrong at a party. Since alcohol adds risk to a group experience, insurers sell liquor liability insurance as separate coverage at an extra cost.

Let’s say you forget about insurance and just throw a party because your main focus is to have a good time. If someone gets hurt, what are you going to tell the victim? If word gets around that your company lacks proper insurance to pay for injured victims at your alcohol parties, it can damage your firm’s reputation quickly.

Another reason to get liquor liability insurance is that it makes it easier to do business with partners or investors who want to see proof of insurance. Carrying the right insurance demonstrates you take responsibility for safety issues at your establishment.

Get Liquor Liability Insurance for Your Business with RMS Insurance Brokers Today!

Is your business considering having regular company parties that serve alcohol to employees and guests? Make sure you have liquor liability insurance policy coverage to avoid paying for complex lawsuits. Contact us to get in touch with one of our insurance experts. At RMS Insurance Brokers we are ready to answer your questions and help you get started with a liquor liability insurance plan.

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