Holiday Parties Can Lead to Unaware Legal Liability Accidents

One third of all homeowners are unaware that they can be found legally liable if an intoxicated guest from their holiday party causes a car crash.

According to a survey by the Independent Insurance Agents and Brokers of America, one third of all homeowners are unaware that they can be found legally liable if an intoxicated guest from their holiday party causes a car crash.

In most states, the courts will rule against holiday party hosts where alcohol is provided to minors, or if liquor is served recklessly to any guest who is clearly intoxicated. While an intoxicated guest cannot successfully sue a party host, third parties who were injured in an alcohol related accident will often go after the party host, especially if the drunk driver is uninsured or underinsured.

Lawsuits related to drunken driving injuries can be financially devastating to the person found liable. As an example, a Colorado man recently was awarded $18.5 million after a drunken driver ran him over in his driveway. If you are underinsured or not carrying the proper liability coverage, an accident at your holiday party can put you in the poorhouse.

It’s Not Just Car Accidents

It’s not just car accidents that can ruin your holiday party. As an example, if an over served guest sets your Christmas tree or house on fire with their cigarette and the fire ends up destroying a neighbor’s house, you can be held liable.

While host liability laws vary by state, it is entirely possible that a host can be held liable even if no alcohol is involved in the incident. A guest who slips and falls on your property can end up suing you, or if your holiday feast comes with a side of food poisoning, any guests who become seriously ill could take you to court.

The list of potential liabilities expands if you have a swimming pool, guns in the house, trampolines, or even a pet dog who likes to bite strangers. All of these could lead to an injured guest and a large legal bill and potential high dollar award that you will have to cover.

Homeowners Insurance and Holiday Parties

Before you send out the invitations it is wise to verify that your homeowner, or renters insurance policy provides enough liability coverage for any accidents that could happen.

It is extremely important to verify that there are no exclusions on your policy related to serving alcohol. If there are, you should cancel the party or plan on having a dry celebration.

It is important to remember that liability coverage only goes up to the policy limits. A serious accident, such as a fire, could easily push the costs above your policy limits.

Party hosts who are concerned that they may not have enough coverage should consider an umbrella policy that would kick in once your liability policy limits have been reached. Umbrella policies are usually sold in million-dollar increments and are extremely affordable for the added protection. An umbrella policy can literally be a financial lifesaver if a serious accident happens at your party.

Tips for Keeping Your Guests Safe

Here are a few tips to help keep your party safe and avoid costly lawsuits.

• Hold the Booze: You may decide that serving alcohol is not worth the risk. Consider a theme night or interactive video games to keep the party fun without the booze. Serve alcohol free holiday punch along with a range of soft drinks.
• Never Serve a Minor: Never ever serve alcohol to a minor and if you catch a minor sneaking alcohol immediately end it and notify their parents.
• Keep the Party Safe: Before opening the door to your friends and neighbors make sure your house is safe. Sidewalks and steps should be clear of snow and ice. Verify that handrails are not loose or falling out.
• Keep the Lights On: Be sure the house is well lit, especially in stairwells and other areas where a slip or fall is possible.
• Close the Pool: The pool should be shut down for the duration of your party. There is simply too much liability involved with swimming pools so keep the gate closed and locked. If you must allow swimming make sure that an adult is always present to provide supervision to any children in the pool.
• Fire Pits: Keep a fire extinguisher nearby if you decide to have a fire. Fires should be avoided if the wind is strong.
• Dogs: If your dog has a tendency to bite or be aggressive to strangers, it’s best to keep them in a locked room.

These tips should keep your party safe for both you and your guests.