Birthday celebrations. Thanksgiving dinners. New Year’s Eve parties. Now is the season when associations and unit owners celebrate holidays with parties and events.
Whether it’s an association’s sanctioned event or a unit owner who rents the community room, associations need to ensure proper insurance coverage is in place for all events. One of the biggest concerns for boards to consider is whether alcohol will be provided or brought to the event. Most association insurance policies include host liquor coverage. However, associations need to fully understand the insurance coverage for events and social gatherings and how a policy might respond to an incident.
If incidental alcohol is not covered by the insurance policy, a special, one-time event policy can be purchased for most gatherings. If the association allows unit owners to rent the facility, regardless of alcohol being served, the association can request an event policy or liability coverage to extend to the unit owner’s insurance policy. This coverage provides insurance in case of an accident on association property or for owners who travel home from the event where alcohol was involved. If a lawsuit were to arise from an incident, the special event coverage could provide some protection. Another solution is to hire a licensed and insured caterer to serve alcohol. This would transfer the liability risk to the caterer.
Board members and the association’s attorney need to discuss concerns, rule enforcement, and the best way to protect the community during events on common property. The key to fun and safe holiday gatherings is to enforce community guidelines and understand the liability coverage for special events. Before the next party, please reach out to the association’s insurance agent for coverage recommendations and how the association’s policy would respond to an event incident.
Are You Ready for Inclement Weather?
