Seven Risk Management Tips for Your Holiday Party
While the office holiday party is a great opportunity for socializing away from work, and a nice way for employers to say “thanks” to their employees for their efforts throughout the year, holiday parties pose risks to employers and employees alike. And unfortunately, every holiday season includes a company party where an employee has a few too many drinks and says something inappropriate, gets into an altercation, or worse, gets into an accident on the way home and injures or kills someone. Not only does this pose challenges from an HR perspective but worse, opens the company to risk including investigations, the threat of costly lawsuits, and a marred reputation.
Though the holiday party carries some of the greatest risks employers face throughout the year, many of these risks are avoidable. By treating the party as a serious risk management responsibility, and considering the potential risks surrounding liquor law liabilities, sexual harassment and assault, violence, slips and falls or other injuries, food poisoning, premises damage, and reputational damage, employers are better able to navigate the holiday party season.
Here are seven holiday party risk management tips to keep you, your employees, and your party safe, happy, and disaster-free:
1. Establish boundaries for conduct. Prior to the party, review company policies on acceptable behavior, the potential liabilities, and the consequences of noncompliance. Ensure each employee understands the rules and reiterate to all that the party is a work-related event, and sexual harassment or other inappropriate behavior will not be tolerated. If you are planning to serve alcohol, take the time to remind everyone about responsible drinking and consider imposing drink limits.
2. Abide by your liquor law liabilities. When it comes to holiday parties, it’s no surprise alcohol is easily the biggest risk. If someone is served alcohol at your party and ends up getting injured, or injures someone else, in a car accident or altercation, your company may be responsible for medical bills, vehicle repairs, a wrongful death lawsuit, and a host of other liabilities. For this reason, it’s imperative employers establish safe drinking standards. To further mitigate your risk:
- Do not have an open bar
- Create a drink voucher system
- Hire a professional bartender
- Offer non-alcoholic drinks
- Stop serving liquor an hour before the end of the party
- Arrange alternate transportation for those who need it
3. Host your party offsite. If something should happen, it’s better for it to happen outside of your business location. While you may still be named as a defendant in a civil lawsuit, some of the liability will likely be shared by the venue.
4. Identify and eliminate safety hazards. Before the party, tour the venue to identify potential hazards and ensure all areas, indoors and out, are free from slip and fall hazards, standing water, obstructions, etc.
5. Use professional food service. Foodborne illnesses are becoming a more common threat and parrty buffets are a perfect breeding ground for contamination. If planning to serve hors d’oeuvres or food, hire a reputable firm that is knowledgeable in food handling safety standards.
6. Investigate incidents in a timely manner. If an incident happens during or after the party, immediately gather and thoroughly document the facts and circumstances while the incident is still fresh in everyone’s mind.
7. Double check your insurance coverage. Review your company’s policies to see if your liquor liability is covered under your CGL policy. Also consider coverage such as Employment Practices Liability Insurance (EPLI) to protect against claims of discrimination, sexual harassment, emotional distress, and other issues.
We hope your company holiday party is a time for celebration and encourage you to put your holiday party on your risk management to-do list! Should you need any help, please contact our risk management experts and let us help you keep your business and employees safe this holiday season!
