‘Tis the season for social gatherings and a desire to celebrate with family, friends, and colleagues. However, behind the glittering decorations lies a range of risks that can turn your festivities into a legal and financial nightmare. Understanding and mitigating these risks is crucial for protecting your treasured belongings as well as your bottom line.
DAMAGE
A luxury home filled with fine art, antique furniture, and rare collectibles presents an elevated risk for accidental damage during a party. Even well-meaning guests can inadvertently knock over a sculpture, spill wine on custom upholstery, or scratch a delicate surface. The financial repercussions can run into hundreds of thousands of dollars—or more.
Secure high-value items in a locked area or move them to an offsite vault.
Rope off areas where fine art is displayed and restrict areas where irreplaceable items are located.
Consider purchasing a separate, short-term event insurance policy which can cover theft or damage if your homeowners’ limits are not high enough to meet the cost to replace or restore your property.
THEFT
Theft isn’t limited to your valuable physical assets – your confidential personal information is also at risk. Large gatherings increase the potential for cherished belongings to disappear, particularly when guests bring plus-ones or vendors have access to private spaces. Worse yet, documents can be photographed and missing items may not be noticed for months.
Limit access to private areas by hiring security personnel and install cameras in common areas to deter criminal activity.
Secure electronics such as laptops and tablets in your safe, and move paperwork with account information to a locked cabinet in a locked room.
Obtain updated appraisals to ensure you still have the coverage you need if items have appreciated in value. Then, check that your homeowners’ or personal articles policies have sufficient limits.
PRIVACY & REPUTATION
Guests are likely to take photos or videos that reveal the layout of your home, your possessions, or your lifestyle. In the wrong hands, this information could be exploited by burglars, stalkers, or the media. Unflattering photographs could ruin your reputation if uploaded to social networks.
Implement a no-photos policy or limit photography to certain areas of your residence. Another option is to hire a photographer and provide them with detailed guidelines before the event, then review the digital images before they are shared with your guests.
Consider excess liability insurance. This policy works on top of your homeowners’ or umbrella policies to shield you from libel and slander, and it provides coverage for legal defense and related expenses.
LIQUOR LIABILITY
Most homeowners’ insurance does not cover the liability incurred due to alcohol-related claims. In addition to taking precautions during the event, consider a few preventative measures in advance of the big day.
Hire professionals who are bonded and licensed through a reputable company, and make sure they are trained to recognize and politely address overconsumption. If an inebriated driver hurts someone, you could end up funding your own defense from charges filed by the injured party.
Monitor areas where alcohol is served. Should a minor consume alcohol at your party and cause an injury to people or property, you could be named in a criminal or civil lawsuit.
Provide transportation options or hire drivers to prevent accidents after guests leave.
Also known as bartender insurance, you may wish to purchase a supplemental liquor liability policy to cover incidents caused by intoxicated staff, guests, or family members.
HARASSMENT CLAIMS
If you hire bartenders, caterers, or servers, you become their employer for the evening. This comes with liability and responsibilities, including providing a safe environment. This is especially true if you plan to ask your domestic service staff to work at your holiday event.
Unfortunately, incidents of aggression or sexual harassment can arise especially if alcohol is involved. Whether it’s an injured guest or employee, you might be held liable if you failed to address the issue appropriately.
Vet the companies you hire and confirm that they carry sufficient insurance in addition to training their teams on professional etiquette.
Ensure your workers’ compensation and employer professional liability insurance (EPLI) programs have sufficient coverage and limits for events, particularly if your domestic staff will be working outside standard hours.
INJURIES
Someone slipping on a polished marble floor or catching a heel on a carpeted staircase could turn your party upside down. If a guest is injured on your property, you could be on the hook for medical costs and other damages, especially if it is linked to negligence.
Ensure your property is hazard-free before the party, and hire someone to monitor the event for spills, broken glass, or intoxicated guests. You want to be free to enjoy your own party!
Consider supplemental personal liability coverage, as it provides protection from potential lawsuits by covering medical expenses, legal fees, and other related costs that may not be covered by your homeowner’s policy.
FOODBORNE ISSUES
Preparing food for a crowd increases the chances of mishandling, undercooking, or cross-contamination. If your guests fall ill after the party, you could be held accountable.
Use reputable caterers or vendors, and examine their contracts to determine the extent of their liability as well as their insurance coverage limits.
Ensure proper food storage and handling, including clearly labeling food for allergens.
By taking strategic steps, you can enjoy your event while minimizing the potential for costly mistakes. Careful planning ensures that your celebration reflects the grandeur of your lifestyle and creates precious memories for all who attend.
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The information provided in this article is for educational purposes only and should not be considered professional advice. Please consult with a Lockton representative for information regarding specific insurance products and services.