Social Host Liquor Liability (Are You Having A Party?)

by Anna Glendenning | More from this Blogger

18 Dec 2006 11:59 PM

Car crashes are the number one cause of death for Americans between the ages of 4 and 34. There were 41,821 people killed in automobile crashes in the United States during the year 2000 with 16,653 (nearly 40%) of those wrecks involving alcohol use. The Holiday season is one of the most deadly times of the year to be out on the highways, or even in our own neighborhoods.

If you will be, hosting a Holiday Party and serving liquor in your private home you might want to be sure you understand your responsibility and legal liability when it comes to serving alcohol.

Several states have passed laws called "Dram Shop Liability." These laws make it possible to hold those who serve alcohol to an intoxicated or under age customer responsible for damage or injury. These laws also offer an injured person such as the victims of the drunk driver a method to sue the person who served the alcohol. Some of these laws include circumstances where criminal charges may also apply.

Originally, the Dram Shop Liability laws were intended to apply to taverns, bars, and other establishments selling and serving alcohol. The fact is however, "social hosts" (such as those holding a home New Years Party) also have some exposure to the risk of liability for alcohol serving.

The California Court of Appeals applied the Business and Professions Code section for alcohol servers to the sponsors of a company party where alcohol was served to an employee who was a minor. The liquor was free to employees attending the party, however the dram shop law applied and the sponsors of the party were found liable.

Most social hosts will have liability coverage under their policy as long as liquor is not sold. Selling or manufacturing alcoholic beverages requires a special liquor liability coverage. Some situations may fall between such as an organization that sponsors a fundraiser and arranges for liquor sales as an additional way of raising money for the cause.

If you plan to host a holiday party and server alcohol:

• Talk with your insurance agent about your liability insurance coverage and any exclusions, conditions or limitations your policy might have for this kind of risk an exposure. Appropriate liability insurance coverage is necessary. In some cases "special event" coverage may be available that will cover both liquor liability and other liability exposures specific to the event.
• If the party will be a large mixed-aged group, consider hiring a professional bartender most are trained to recognize signs of intoxication and politely limit consumption.
• Be sure you know who the designated drivers are and who will be doing the driving.
• Arrange transportation for guests who need help getting home safely.
• Limit the actual amount of alcohol available for consumption or serve specialty drinks.

As a party host, the last thing we want to feel is responsible for serving too many drinks to a friend who leaves our home, and kills himself, his family or another family. Regardless of the liability risk, the emotional guilt would be difficult for most people who like to entertain friends and family by hosting a party, to overcome.

Photo credits for this blog entry: (no use restrictions for these photos)

Related Blogs:

• Martin and Jennifer
• The Price of Driving Drunk

Coming soon!

• The Umbrella Martin Gave to His Daughter.

Glossary of Insurance Terms:

A | B | C | D | E | F | G | H | I | J-K | L | M | N | O | P | Q-R | S | T | U-V | W-Z

Families.com Blogs are for informational purposes only. Families.com assumes no responsibility for consumer choices. Consumers are reminded that it is their responsibility to research their choices properly and speak to a certified insurance professional prior to making any decision as important as an insurance purchase.

alcohol, Host Liability, party planning, Server Liability