Some of you may be thinking that it’s far too early to start thinking about the holidays, but the reality is, many of your organizations will be planning holiday parties in the coming weeks. While taking a break to unwind and celebrate with co-workers should be a happy experience, it is important that those involved in planning the company holiday party are mindful of the underlying risks associated with such an event in order to strive for an incident-free celebration.
An important step before planning a holiday party, or any company gathering, is to review your insurance policies, particularly the coverage for company-sponsored events in your workers’ compensation and general liability (GL) policies. Under the worker’s comp, it is not uncommon for policy language to exclude injuries to employees that take place away from the worksite. Therefore, if an employee sustains an injury at the party, the company may be required to provide compensation for the injury without having the proper insurance coverage to reimburse them.
Reviewing the general liability coverage is also important. If you plan to serve alcohol at your party, this policy needs to include host liquor liability language to protect the company against potential bodily injury claims caused to any third party due to alcohol consumption. This provision ensures that companies who are not in the business of selling, serving and distributing alcohol are properly covered, since your company can be held liable for injuries sustained as a result of alcohol consumption. The company may again be required to provide compensation for the injury without having insurance coverage to reimburse them.
Another recommended tip to minimize holiday party risk is to request copies of the venue’s certificates of insurance for liquor liability, naming your company as an additional insured under the venue’s policy.
Other areas to consider are:
- Incidental Medical Malpractice. Should the insured need to administer first aid or CPR, this action could be covered under General Liability policy.
- Employment Practices Liability. This coverage is often overlooked. However, there is often a spike in sexual harassment claims fueled by alcohol and offensive behavior at office parties.
- Event Cancelation Insurance. If you are a small- to mid-sized company spending large sums of money on your holiday gathering, this insurance would allow you to be reimbursed in the event your party is cancelled due to unforeseen events.
Taking these preventive steps while planning your holiday party will help mitigate potential risks.
Click here to request more information about The ALS Group or ways to mitigate your holiday party risk.
