Holiday Parties Can Invite Home Insurance Problems

12/22/2009

Millions of people are getting ready to unwind and enjoy some holiday-related festivities. However, many may not realize that hosting such events can also carry some potentially important home insurance implications.

According to the Insurance Information Institute, people who plan to serve alcohol at holiday gatherings should double check their home insurance policies to make sure they have sufficient liability protection.

"In some states you can be held legally responsible for your guests' actions after they leave your party. If you are throwing a party where alcohol is served, you have a responsibility to make sure that your guests are capable of driving safely. You don't want to allow anyone who has been drinking to drive home and possibly kill or injure themselves or others on the road," said Loretta Worters, vice president of the I.I.I.

The institute warns that some states have "Dram Shop Liability" laws that hold homeowners and businesses accountable if they serve underage or intoxicated people who proceed to injure somebody after departing - and which in some cases can carry criminal penalties as well.

With that in mind, some important ways to avoid insurance and safety problems is to encourage guests to have designated drivers and to consider hiring professional bartenders who are better trained at spotting signs of intoxication. Hosts should also be sure to offer non-alcoholic beverages and to serve food as well as drinks.