Agents, Inform Homeowners Of Holiday Liabilities

Many homeowners are unaware of the liability they expose themselves to if they host holiday parties and allow individuals to drive home drunk, according to a new national survey released by Trusted Choice and the Independent Insurance Agents & Brokers of America.

The survey asked homeowners if they believed they were legally liable if a guest caused an alcohol-related traffic accident after leaving a holiday party at their home.

The survey of 809 homeowners found that one-third did not think or did not know if they could be held responsible in the event of an alcohol-related accident. The telephone survey was conducted in November and has a margin of error of 3.5 percent.

Trusted Choice, the independent agent branding campaign of the Alexandria, Va.-based independent insurance agent group, said agents should advise their homeowner clients that in many states, individuals hosting holiday parties can be held liable.

“There are so many ‘what if’ scenarios that can face insurance buyers today, and not all of them are everyday occurrences,” said Madelyn Flannagan, IIABA vice president for education and research commented in an e-mail. “An independent agent can provide a tremendous value-added service to their clients by providing expert knowledge and coverage reassurance. The nation’s current economic crisis has everyone more vigilant about their financial matters. Agent’s need to reach out and help clients understand and mitigate their potential losses, not only during the holiday season, but during the entire year.”

Trusted Choice went on to say that many courts have found hosts liable for the damages their party guests cause as a result of consuming alcohol at their social gatherings and then driving motor vehicles.

Many states also have enacted statutes that can be interpreted as mandating non-commercial social host liability. In these situations, if a guest or third party is injured in an accident that is related to alcohol consumption and the drinking can be linked to the host, the host could be held responsible for the payment of medical bills, vehicle repair costs, lost time from work and—in the worst case—claims for wrongful death resulting in huge monetary settlements.

The survey found that:

• Almost 46 percent of homeowners thought they were not liable in the event that a guest became seriously ill from catered food consumed at the host’s home

• About 22 percent did not think they could be held responsible if a guest was injured on the sidewalk in front of their property.

• More than one-third of homeowners either did not think they could be held responsible or admitted they did not know, if they destroyed another home with a careless act.

The bottom line is that homeowners could, in fact, be held responsible in any of these scenarios or accidental incidents, Trusted Choice said. It recommended that consumers review the homeowners policy and understanding the coverage. Homeowners also should consider expanding coverage by purchasing a personal umbrella policy with greater limits, especially for anyone who is a frequent party host.

Other recommendations:

• Limit the guest list to those you know.

• Host a party at a place with a liquor license, rather in a home or office.

• Provide filling food for guests and alternative non-alcoholic beverages.

• Arrange transportation or overnight accommodations.

• Stop serving alcohol at least one hour before the party is scheduled to end.

• Do not serve guests who are visibly intoxicated.