If Grandma got run over by a reindeer, you’d better hope the reindeer wasn’t drinking at your holiday party.

If a guest or third party is injured in an alcohol related accident, and the drinking can be linked to your party, you could be held responsible.  This includes paying medical bills, vehicle repair costs, lost time from work and, in the worst case, claims for wrongful death resulting in huge monetary settlements.

A social host’s liability when serving alcohol to guests is no joking matter.  Many courts have found non commercial hosts liable for the damages their party guests cause as a result of consuming alcohol and then driving motor vehicles, and several states have enacted statutes that can be interpreted as mandating non commercial social host liability.

When hosting a holiday party, individuals should look to the liability portion of their homeowners or renters policy for protection if they are sued and found liable for an accident involving a guest who drank at their homes.  Consumers should regularly review their liability insurance coverage limits to ensure they are adequately covered should an accident occur. 

You can’t entirely eliminate risks, but planning ahead and learning your responsibilities as a host is the best defense.  Purchasing a personal “umbrella” liability policy—providing $1 million or more in additional coverage over the limit of a standard homeowners or renters policy—may be a prudent move for the frequent party host, and can cost as little as $125. a year.

How to prevent holiday party accidents and protect yourself or your business;

• Limit your guest list to those you know.
• Host your party at a restaurant or bar that has a liquor license, rather than in a home or office.
• Provide filling food for guests and alternative non-alcoholic beverages.
• Schedule entertainment or activities that do not involve alcohol.
• Arrange transportation or overnight accommodations for those who should not drive.