Company holiday parties are an opportunity to celebrate a successful year and show appreciation for your employees. However, these gatherings can pose significant risks that may impact your business’ finances and reputation. Unaddressed issues like alcohol consumption, workplace conduct, and health and safety concerns can have costly consequences. Your organization can proactively promote a safer, more inclusive environment by managing these holiday celebration risks.

Claims Associated With Hosting Holiday Parties

• Premises liability: Slip-and-fall claims are common during holiday gatherings, especially in winter when icy walkways and wet floors increase the likelihood of accidents.
• Liquor liability: Alcohol-related incidents can lead to significant claims, especially if intoxicated guests cause damage or harm. Your organization may bear responsibility if an impaired employee drives after the event and causes harm.
• Harassment and discrimination: Festive atmospheres, particularly with alcohol present, can sometimes lead to inappropriate behavior among employees. Harassment or discrimination claims may arise if an employee feels uncomfortable or threatened by another's actions, language or advances. 
• Food-related illnesses and allergies: Serving food without clear allergen information or proper food handling can lead to foodborne illnesses or allergic reactions. If a guest has an adverse reaction as a result, your company could be held liable.
• Property damage: Holiday decorations, lights and equipment can pose risks to property. Fire hazards increase with their use, potentially leading to damage to the venue or surrounding areas.
• Workers' compensation. If employees are required to attend the event and sustain injuries, they may file workers' compensation claims to cover medical expenses and lost wages. This is particularly relevant if the event is deemed part of their job responsibilities or if injuries occur during mandatory activities.

Tips to Prevent Holiday Party Claims & Lawsuits

Choose a Safe Venue

When organizing a holiday party, your business must carefully weigh the advantages and challenges of each venue to ensure a safe and enjoyable experience. Hosting an onsite event presents unique challenges, including accommodating guests comfortably, managing property safety and securing decorations to prevent accidents.

Conversely, offsite locations often provide attractive amenities and a festive atmosphere but introduce additional risks related to third-party liability. Ultimately, selecting the right venue means balancing the benefits of convenience and ambiance with the potential liabilities, making detailed planning crucial to safeguard the event and your organization’s reputation.

Ensure a Safe Event Space

Seasonal conditions like snow and ice create slip-and-fall hazards. Additionally, holiday decorations, lights and electrical setups pose fire hazards. Furthermore, vendors like caterers and entertainers can also introduce liability concerns, including faulty equipment, unsafe food handling or poor crowd management, which can lead to accidents or injuries.

To minimize liability risks:

• Thoroughly inspect pathways, lighting and access to emergency exits to ensure all areas are hazard-free.
• Clear walkways, place floor mats at entry points and use proper signage to warn of wet or slick surfaces.
• Inspect for damage or faults. Avoid overloading circuits, keep flammable items away from heat sources and confirm all decorations comply with fire safety codes.
• Utilize bright, energy-efficient lighting to improve visibility along pathways, entrances and exits.
• Confirm smoke detectors are operational.
• If the event is onsite, ensure your general liability policy covers event-related incidents. For external venues, verify their liability coverage and request to be named as an additional insured party.
• Obtain certificates of insurance from all vendors to confirm their coverage.

Perform Responsible Alcohol Serving

The presence of alcohol at events increases the likelihood of incidents involving intoxicated guests, which can cause accidents or injuries. Your organization could face liability if an intoxicated guest causes harm, including legal issues from DUI incidents or other post-event injuries. The repercussions can be financially severe, affecting your company's reputation and leading to costly legal battles.

To mitigate alcohol-related risks at your events:

• Distribute drink tickets or restrict drink options.
• Offer non-alcoholic beverages.
• Hire licensed bartenders.
• Secure liquor liability insurance.
• Provide transportation options (e.g., rideshare vouchers, shuttle service).
• Monitor consumption levels and encourage moderation.

Protect Guests from Food-related Risks

It’s important to ensure that all food is prepared and served at safe temperatures. Hot foods must be maintained at 140°F or higher, while cold items should stay at 40°F or below. Improperly stored or handled food can harbor bacteria like Salmonella or E. coli, leading to serious illness. Additionally, many holiday menus feature ingredients that could trigger allergic reactions, a leading cause of emergencies. If an attendee has an allergic reaction from undisclosed allergens at your event, it could lead to legal consequences.

To safeguard your guests from food-related risks:

• Hire reputable caterers who follow food safety standards.
• Confirm caterers have liability insurance to cover food-related claims.
• Ensure hot and cold foods are kept at safe temperatures throughout the event.
• Clearly label foods with allergen information, provide allergy-friendly options and communicate potential allergen hazards.

Foster Respect & Inclusivity

Holiday parties can expose your business to harassment or discrimination claims if inappropriate comments or advances occur or if employees feel discriminated against due to race, gender or disability. Additionally, religious elements, decorations or practices may unintentionally exclude or alienate employees of different beliefs.

To foster inclusivity and prevent harassment:

• Send a pre-event reminder outlining respectful behavior expectations and the applicability of workplace policies during the party.
• Choose accessible venues with wheelchair access and clear pathways.
• Plan for reasonable accommodations for employees with disabilities to create an inclusive experience.
• Select neutral and seasonal themes.
• Avoid activities that could pressure employees to disclose personal beliefs.
• Secure employment practices liability insurance (EPLI) for additional protection against claims stemming from violations of expected conduct.

We’re Here to Help Make Your Holiday Parties Risk-Free

Hosting a holiday party can be a rewarding way to celebrate with your team, but it’s crucial to plan carefully to manage potential risks. By proactively implementing these best practices, ensuring appropriate insurance coverage, and fostering a safe and inclusive environment, you can help create a successful event that everyone enjoys. Connect with a member of our team to learn more about how we can help protect your organization during the holiday season and beyond.