Liquor Liability Insurance This Holiday Season

The holiday season is a time for festivities, for throwing up the décor and donning the Christmas tree with vibrant lights. What it isn’t time for is having to deal with the ramifications of a costly lawsuit because one of your guests drank too much and got into an accident when driving home, causing severe injuries and significant property damage. Even if your guest made the decision to get behind the wheel, the host has some liability when liquor is being served.

Enter liquor liability insurance, a unique form of liability insurance specifically designed to protect hosts from any liability claims they may face due to bodily injuries or property damage. Let’s be transparent here: when liquor and fun times are involved, things can go sideways very quickly. Whether it’s your Uncle Tommy getting a little too wild on the eggnog and slipping on an icy porch or just a visitor getting caught in the crossfire when one of your guests decides to indulge too much before getting behind the wheel, liquor liability keeps the holidays festive. As a homeowner, there’s always the potential liability for injury – and that risk increases when alcohol is thrown into the mix.

All is not lost. Liquor liability insurance can preserve your peace of mind and protect you if you are sued or threatened to be sued for damages or injuries arising from your decision to serve alcohol this holiday season. Read on for Excalibur’s guide to liquor liability insurance and why you may need it.

“Liquor Liability Insurance” – What It Is, What It Covers, & More

When you’re a host, you have the potential to be sued. Automatically as someone serving liquor, you assume a certain amount of responsibility.

Liquor liability insurance is a form of liability insurance that protects you if you are sued or if someone threatens to sue you for damages to someone else’s property or bodily injury.

There are a few options when it comes to hosting a party, however. They are as follows:

• For a formal company event or a very large gathering you will need both a liquor licence and liquor liability insurance. LCBO offers a special occasion permit for $25 and liquor liability insurance for around $150 for just one event.
• Party alcohol liability (PAL) insurance is a great option if you’re hosting a cocktail party, wedding, or large gathering involving alcohol. This is for hosts of reception-type events within rented facilities, such as halls. A license for a gathering of under 100 people is approximately $150 and can offer between $1-5 million dollars of coverage.
• For just a small get together with a few friends and/or family in a home, condo or apartment, you’ll only need to have a property insurance policy to have some protection. Liability coverage is the most important component of your coverage as it relates to this exposure. That is why it is always best to carry increased liability limits or have an umbrella liability policy for additional protection.

In Ontario, there’s such thing as a “social host.” Within Ontario’s host liability law, a social host is anyone who holds a party on their property – and they hold liability regardless of whether they organize a bring your own booze (BYOB) party or you provide the alcohol. A social host could be someone serving or condoning alcohol at a property which they own or have control of, anyone who has a unique and/or non-employer relationship with their guests, and anyone who is not selling or providing alcohol for profit.

As a social host, you are responsible for your guests when you serve alcohol on your property. You could have liability as a server, an occupier, a sponsor of potentially risky activities, as an employer of employees being served alcohol, and anyone involved in the service of alcohol.

Tips for Safe & Entertaining Hosting

There’s a way to keep a lid on these risks this Christmas season without being a buzzkill! Consider the following tips for being a safe and entertaining host for your upcoming Holiday shindig:

• Keep high traffic areas clear of any debris, cords, pets, and small children.
• If you notice any fault in your property, such as a cracked stairway, loose railing, etc., be sure to fix these before guests arrive to avoid any injuries.
• Clear away all snow and ice from your driveway. Put down salt and ensure everything is well-lit so no one trips and hurts themselves on their way to your door.
• Clean up any broken glass as soon as possible to avoid injuries.
• Keep an eye on guests who are drinking. If someone appears inebriated, you reserve all rights to cut them off and keep them safe. Make sure they have a safe way home.
• Watch out for fire hazards! Lit candles aren’t a great idea around drinking guests, so maybe opt for the battery variation instead.
• And speaking of lights, always check your cords for electrical string lights to ensure that they aren’t frayed, damaged, or malfunctioning before setting them up.
• Finally, have an emergency preparedness plan in place just in case the worst-case scenario does arise! Your plan should always include insurance – and liquor liability insurance is a must-have as a homeowner hosting a party on their property with liquor involved!

Your Responsibility as a Host

Remember that even once guests leave, you could still be held liable for anything that happens after your guests have left. This means you could be held liable for a DUI, for a fight, for property damage that inebriated, rowdy guests cause, and more. Please keep the holidays fun and safe for everyone this year and make sure that all of your drinking patrons have arranged alternative transport home, whether that’s a designated driver, a taxi or Uber, or other form.

These people are likely your friends and family – if not for your own sake, for theirs! Protect your guests by being a safe and responsible host and, when all else fails, liquor liability insurance is there as a fallback to protect your finances. Call Excalibur Insurance to chat with a Defender today about how this insurance can keep you and your family safe.