Tips to Avoid the Gift of Claims During the Holiday Season


The end of the year is right around the corner which means, so are the holiday parties. There are many things to celebrate; the new year approaching, Christmas, or an annual bonus. With all this excitement, a holiday party is in order. To avoid the gift of claims, check and make sure you’re protected so you can start the new year with joy!

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Hosting your holiday party can be fun, but you should know the risks your company could face during the celebration including; alcohol intoxication and underage consumption, inappropriate behavior because of alcohol, sexual harassment, and religion to name a few.

We have prepared coverage suggestions to ensure that you have fun and a peace of mind while being protected during the holidays:

Special Events Insurance

For as little as $150 you can get it and reduce the risks associated with holiday parties. Even if your business is not found at fault for an incident, the legal costs of responding to a claim can bankrupt you.

Many businesses purchase Special Events Insurance to protect themselves in these scenarios. Special Events Insurance covers liability if your company is found responsible for property damage or a third-party injury caused during your event. Depending on the type of Special Event Insurance, your policy can cover your guests, including their medical and personal injury costs associated with an incident that occurs at the holiday party.

Additionally, if your company is serving alcohol on-premises, you may be required to purchase liquor liability insurance or host liability insurance, depending on location and the situation.

Employment Practices Liability Insurance (EPLI)

Another important type of insurance that can protect your business in case of harassment or discrimination claims is Employment Practices Liability Insurance or EPLI. If customers or non-employee guests are invited to attend, ensure that your EPLI policy extends coverage to them as well.

But, isn’t a holiday party covered by my General Liability?

General Liability Insurance does cover third-party claims of injury and property damage–but your policy doesn’t extend to events that happen outside of normal business operations, like a holiday party.

Bear in mind that there are several reasons you may need additional insurance. For example, your event might have too many attendees, or your General Liability policy may not extend to events that serve liquor.

Quick tips and tricks to use as reference:

  • Discourage employees from driving home intoxicated by offering taxi reimbursements or arranging transportation.
  • If holding the party on company property, hire a catering company or professional bartenders to serve food and alcohol, and require that they provide proof of liability insurance, naming your company as an Additional Insured.
  • Ensure your company’s harassment and employee conduct policies specify that they also extend to social events.
  • Require proof of licensing and insurance from third-party vendors contracted for the event, as well as from the venue if the party will be held off-premises.
  • Keep holiday parties religiously and culturally neutral to ensure that all feel included and welcome.
  • Hold the party outside of work hours and emphasize that attendance is optional. 

We hope this little bit of information is able to help keep you safe during the holiday season. Have a very safe and happy holiday, from our family to yours!