As we rapidly approach the holiday season, many offices will begin planning their own company-wide parties. While office parties or events can be a great way for your team to socialize and celebrate the season, they are not without their potential risks.
At Berry Insurance, we’ve already begun planning our own office excursions - meaning we have this exact topic on our mind!
With all the associated risks that come with hosting large company events, the importance of having proper insurance coverage becomes even more apparent. In this article we’ll review potential risks that come with hosting office parties, how they will be covered by your commercial insurance policy, and our tips on how to have a safe party!
Table of contents:
- What are the common risks when hosting office parties?
- Does my insurance cover office parties
- Tips to keep your next office party safe
What are the common risks when hosting office parties?
While it should be a carefree time to celebrate your team, any large group setting can open up your business to potential risks and claims, making it important for hosts to be aware of every possibility.
The following are some of the potential risks that you could find yourself grappling while celebrating with your team:
- Accidental tumbles and falls: When sidewalks are icy or inhibitions are low, people are gonna start falling. While often accidental, the blame can be pinned against the hosting business in some scenarios.
- Property damages: On top of decorations and lights creating potential fire hazards, your party or guests could wind up damaging or stealing others property - leading to the host/employer being liable for third-party losses.
- Alcohol-related incidents: If you’re serving alcohol at your party, intoxicated guests could pose a threat to themselves and others. This can include inebriated guests being involved in car accidents after leaving or altercations with other guests.
- Harassment and discrimination: Sometimes people end up saying (or posting!) things at a party they might regret - but could affect the reputation of your business.
Does my insurance cover office parties?
When it comes to hosting office parties, there are some major insurance coverages that will offer financial protection and legal support in the unfortunate event that you encounter a claim.
General liability:
A recommended part of standard business insurance policies, general liability covers claims made against your business from someone who experienced bodily injury or property damage. It can also provide coverage for injuries sustained from your product, claims for libel, slander, or defamation, and claims filed by your employees or other third-parties.
In most cases, general liability will be what will protect your business from the potential risks we mentioned above. So, if an intoxicated guest/employee caused a car accident or property damage and the liability fell on the business, general liability insurance will provide protections and legal assistance.
If your business is planning on holding a larger special event, like fundraisers or launch parties, you may need to consider obtaining special event insurance.
Workers’ compensation
A legal requirement of nearly all Massachusetts businesses, workers’ compensation provides coverage for employees who are injured or become ill as a result of their job.
So, if an employee gets injured while at your upcoming office party, your workers’ compensation policy would cover their injuries. For a guide on what to do if an employee gets injured on the job, read this article: How to File a Workers Compensation Claim When an Employee is Injured.
Employment practices liability (EPLI)
If any employees make accusations against your business after an office party for discrimination or harassment, your business would be protected through employment practices liability, or EPLI.
EPLI can be added onto a business’ general liability insurance (with certain limitations), or be purchased as a separate policy. To learn more about the different types of EPLI, what it covers, and if it is right for you, check out this guide: Does my Business Insurance Cover me for HR Issues (What to Know About EPLI).
In addition to these coverages, business owners may wish to check with their trusted insurance agent or carrier to see if their general liability coverage protects them for liquor liability while hosting. Depending on the type of party, the guest list, and how alcohol is being served, you may need to acquire additional liquor liability coverage before the festivities begin.
Tips to keep your next office party safe
Before you start hanging the streamers, read over our tips to ensure your next office party runs as smoothly as possible!
- Review the safety of the space by making sure there are no icy sidewalks, tripping or fire hazards, etc.
- Limit drinks by having a closed bar or using a drink ticket system.
- Offer plenty of food, snacks, water, and non-alcoholic beverages for your team.
- Speak with your insurance agent or carrier regarding your event and increase your coverage limits (where necessary).
- Cover the costs of ride share service or offer to carpool with guests if they have been drinking.
- Hold your party or event at an offsite venue that has their own coverage and provides you with some extra protection to split some of the liability for the event.
Celebrating with coverage
While office parties can be a great way to unwind at the end of a busy year, it’s important not to drop your guard on the potential risks that can arise from large gatherings.
Reviewing your existing insurance policies to guarantee you have the appropriate amount of coverage and ensuring your party space is up to safety standards are crucial steps to take before you start cracking open the champagne.
And with the start of a new year right around the corner, what better time to get started reviewing your commercial policies? For our list on why you should review your business insurance policy annually and when you should make changes, download our checklist below!
