Hosting a Company Holiday Party: Do’s and Don’ts for Employers
Key takeaways
- A company holiday party is a business event, and the employer can carry real liability for what happens there, especially when alcohol is served.
- Hiring a licensed caterer or bartender who carries liquor liability coverage, and asking for a certificate of insurance, shifts much of that risk away from your business.
- Keeping attendance voluntary, limiting alcohol, and offering safe rides home all lower the chance of a claim.
- General liability, host liquor liability, employment practices liability, and workers compensation can each come into play, so confirm what your policies include before the event.
- Capitol Benefits can review your coverage for a DC, Maryland, or Virginia event before the invitations go out.
The year-end party is one of the simplest ways to thank a team for a year of hard work. It should be a good night that people talk about for the right reasons. A little planning ahead keeps it that way, and it protects the business that is hosting it.
Why a party is also a business risk
When a company hosts an event, it takes on responsibility for the people who attend. A few situations come up more than any others:
- A guest is injured, for example by slipping on an icy entrance or a wet floor at the venue.
- Someone has too much to drink and is involved in an accident after leaving. Laws on host responsibility differ across DC, Maryland, and Virginia, but even a claim that is eventually dismissed can be expensive to defend.
- A conduct complaint follows the event, such as an allegation of harassment between coworkers.
- An employee is hurt at an event they were expected to attend, which may be treated as a work-related injury.
The do’s
- Do hire licensed professionals to serve alcohol. A caterer or bartending service that carries its own liquor liability coverage is trained to check IDs and cut people off. Ask for a certificate of insurance and, where possible, to be named as an additional insured.
- Do keep the alcohol in check. Drink tickets, a bar that closes an hour before the party ends, plenty of food, and good non-alcoholic options all help.
- Do make getting home easy. Rideshare credits, a group rate at a nearby hotel, or a shuttle cost far less than a claim.
- Do keep attendance voluntary, and say so in the invitation.
- Do give a friendly reminder about expectations. A light note that workplace conduct policies still apply, and managers who set the tone, go a long way.
- Do read the venue contract. Many venues require specific insurance or ask you to take responsibility for certain losses.
The don’ts
- Don’t ask managers or employees to tend bar. It puts them in a hard position and puts the risk squarely on the company.
- Don’t serve anyone who is underage or visibly intoxicated.
- Don’t turn the party into a business meeting. Save performance conversations, promotions, and bonus news for the office.
- Don’t assume the venue’s insurance protects your company. It is written to protect the venue.
- Don’t forget errands. If an employee picks up supplies or drives guests in a personal car, that trip can raise auto liability questions for the business.
Check your coverage before you send the invitations
Many general liability policies include host liquor liability for businesses that are not in the business of selling or serving alcohol, but limits and exclusions vary. If you are renting a venue, the contract may require coverage you do not currently carry, and a one-day special event policy can fill that gap. Employment practices liability insurance is designed to respond to harassment and discrimination claims, including those tied to company events. Workers compensation may apply to employees injured at a work event, and hired and non-owned auto coverage protects the business when employees use their own cars for company errands.
A reasonable next step
Once you have a date and a venue, send us the venue contract and a quick description of the event. We will confirm what your current policies cover, flag any gaps, and help you get the right certificates in place so you can enjoy the celebration with your team.
Frequently Asked Questions
Does general liability insurance cover alcohol at a company party?
Many general liability policies include host liquor liability for businesses that do not sell or serve alcohol as part of their operations, but it is not universal, and limits and exclusions vary. Confirm it with your advisor before the event.
Can an employer be held responsible if a guest drives home impaired?
It depends on the state and the facts. Host liability rules differ across DC, Maryland, and Virginia, and claims can still be costly to defend. Limiting alcohol and providing safe rides home is the best protection.
Should a company holiday party be mandatory?
Keeping attendance voluntary is the safer choice. When an event is required, injuries that happen there are more likely to be treated as work related.
What should we ask a caterer or venue for?
Ask for a certificate of insurance showing general liability and liquor liability coverage, and ask to be named as an additional insured. Read the venue contract for any insurance or indemnification requirements.
Does employment practices liability insurance cover claims from a holiday party?
EPLI is designed to respond to claims such as harassment or discrimination, including ones that arise at company events, subject to the terms of the policy. It is worth knowing whether you carry it before the party.
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