Risk Management for Holiday Parties and Corporate Events

The holiday season is one of the busiest times of the year for bars and taverns, with corporate and holiday parties bringing in large crowds and increased revenue. While these events are profitable, they also introduce a host of risks, from rowdy behavior to liquor liabilities. Adequate preparation and comprehensive insurance coverage, such as bar and tavern insurance, are essential to help hospitality businesses navigate these challenges and ensure successful events.

Risks Associated With Holiday Events

During the holiday season, bars and taverns face challenges as they accommodate larger-than-usual crowds and manage increased alcohol consumption.

• Liability risks: Increased patronage during holiday events heightens the potential for customer injuries or accidents. For example, a patron could trip over poorly placed furniture or spill hot food, leading to a liability claim.
• Alcohol-related incidents: The festive atmosphere often results in excessive drinking, which can lead to altercations, DUIs, or injuries. Bars and taverns must account for the liability associated with serving alcohol, especially when guests become overly intoxicated.
• Crowd-management concerns: Overcrowding poses safety risks, as tightly packed spaces can lead to falls, minor altercations, or even emergencies. Without adequate crowd control, these situations can escalate, exposing businesses to legal and reputational risks.

Essential Insurance Policies for Event Coverage

To protect against these risks, insurance agents should ensure their clients’ policies are equipped for holiday events.

General Liability Insurance

This policy is fundamental for bars and taverns. During holiday events, the likelihood of accidents or injuries rises, and expanding coverage limits may be necessary to account for increased traffic and activity.

Liquor Liability Insurance

Serving alcohol at holiday events introduces significant risks, such as overserved patrons causing harm to themselves or others. Liquor liability insurance helps protect businesses from claims related to alcohol-related incidents.

Assault and Battery Coverage

The heightened energy of holiday celebrations can sometimes lead to altercations. Assault and battery coverage protects establishments from claims resulting from physical confrontations on the premises, whether involving patrons or staff. This specialized coverage is critical for bars and taverns hosting large events where emotions and alcohol may run high.

Excess Liability Insurance

Excess liability insurance provides an added layer of financial protection for venues expecting significant crowds or hosting high-profile events. It covers costs beyond the limits of primary policies, offering peace of mind during peak holiday operations.

Proactive Risk-Management Strategies

Insurance alone isn’t enough — proactive risk-management strategies are crucial at holiday events to minimize potential liabilities. Recommend the following to your clients:

• Staff training: Ensure employees are prepared to handle emergencies, intoxicated patrons, and crowd control. Training should include de-escalation techniques for managing disputes.
• ID checks and drink limits: Strict enforcement of ID checks and drink limits can reduce the risk of alcohol-related incidents, helping venues avoid legal and financial repercussions.
• Enhanced security: For larger events, coordinating with local law enforcement or hiring additional security staff can help maintain order and prevent issues before they escalate.
• Pre-event inspections: Encourage venues to inspect decorations, furniture, and temporary structures for safety. Simple steps, like securing hanging lights or ensuring fire exits are unobstructed, can prevent accidents.

Ensuring Comprehensive Coverage for Festive Events

The holiday season brings both opportunities and challenges for hospitality businesses. By working with their insurance agents to adjust coverage and implement risk-management practices, bars and taverns can confidently host successful events.

As an insurance agent, you can help clients secure bar and tavern insurance and other tailored policies as a first step to protecting their businesses. Stay proactive by reviewing existing coverage, recommending essential policies, and providing guidance on managing risks unique to holiday events. Reach out to RMS Hospitality Group for tailored solutions.

About RMS Hospitality Group

At RMS Hospitality Group, our expertly crafted policies are written specifically for the hospitality industry. We offer custom-tailored solutions to meet any venue’s specific needs. For more information, contact our knowledgeable experts today at (888) 359-8390.