Planning to host a New Year’s Eve party? Know your (insurance) limits, NW recommends

PORTLAND, Oregon (KTVZ) — Throwing a New Years Eve party to usher in 2022? If so, keep in mind that homeowners and renters could be liable for the safety of their guests even after they leave the party, the NW Insurance Council advised Wednesday.

At last count, 43 states have social guest liability, or “Liability of Dram Shopstatutes in the books. Most of those laws give an injured person — such as the victim of a drunk driver — the right to charge not only the guilty driver, but also the person responsible for serving the alcohol, whether that person is a bartender. / owner or a private individual who throws a party in his or her own home.

Social liability laws can hold the party host responsible for the safety of partygoers, as well as anyone injured by a partygoer after they leave the event. As a homeowner, you could be held liable for this, even if someone — like a teenage child in your home — throws a party without your permission and someone gets hurt or injure someone else on the way home.

Protecting yourself, your family and guests starts with making sure you have adequate homeowners or renters insurance limits of liability to protect your financial assets,” said Kenton Brine, president of the NW Insurance Council. “Homeowners should also take steps to ensure their homes are safe for residents and visitors.”

Your insurance agent or company can help you understand what is covered under a homeowners or renters policy, along with any exclusions, conditions, and limitations on your policy.

If liability for alcoholic beverages (cover for personal injury or property damage caused by an intoxicated person) is covered by your homeowners insurance policy, the limits can range from $100,000 to $300,000 — but that may not be enough, according to the Institute of Insurance Information (III). In those circumstances, it may be wise to consider adding a Personal Liability Umbrella Policy, which will increase the coverage available in the event that a liability claim is made against you.

“Remember, if limits of liability aren’t enough to pay for the injuries and/or damages of an accident victim, your personal belongings — your home, your investments, or even your retirement savings could be at risk in a lawsuit,” Brine said.

NW Insurance Board and the Institute of Insurance Information offer these common sense tips for your holiday party or other party gatherings:

• meet your state’s civil liability laws, which vary from state to state.
• Encourage guests to choose a designated driver so he or she can drive other guests’ homes. If you’re attending a party and plan to drink alcohol, arrange in advance for a sober driver to take you home.
• Be a responsible host or hostess and limit your own alcohol consumption so that you can judge the sobriety of your guests.
• Offer non-alcoholic drinks and always serve food during the party. By the end of the evening, stop serving alcohol and switch to coffee, tea, water, and soft drinks.
• If guests drink too much or seem too tired to drive home, arrange a sober guest ride, a taxi, or a shared ride, or have them sleep over at your place.
• Consider installing an app on your smartphone to access ride-sharing services such as Uber or Lift, so you can have a car come to pick up guests who you feel should not be allowed to drive alone.
• Provide safe walkways by shoveling snow to clear a path or raking or sweeping leaves and other debris from porches, decks, sidewalks, and driveways. Also make sure walkways are well lit.

WTSCs Goal Zero program, and the NW Insurance Council encourages everyone to “make a plan before you party” and to prevent anyone else from getting a driving restriction.

If you witness a disabled driver on the road, it is appropriate to call 911. When you talk to the 911 dispatchers, they will ask for the make and model of the vehicle, license plate, route and direction being driven, and a description of the driver. If you witness dangerous driving, law enforcement officers tell you to keep a safe distance and do nothing to endanger yourself while you report the vehicle to the police.

NW Insurance Council is a nonprofit, insurer-supported organization that provides home, auto, and business insurance information to consumers, media, and public policymakers in Washington, Oregon, and Idaho.