Nov 09
Social Host Insurance
Driving under the influence of alcohol has long been the scourge of public highways – and auto insurance companies. The liability issue in such instances has been ruled in some courts to fall to the source of the alcohol – in other words, the location where the consumption occurred if it occurred away from home.
Several states have passed laws called “Dram Shop Liability.” These laws make it possible to hold those who serve alcohol to an intoxicated or under age customer responsible for damage or injury. These laws also offer an injured person such as the victims of the drunk driver a method to sue the person who served the alcohol. Some of these laws include circumstances where criminal charges may also apply. “Social hosts” (anyone serving alcohol at a home gathering) also have some exposure to the risk of liability for alcohol serving.
Most social hosts will have liability coverage under their policy as long as liquor is not sold. Nevertheless, it’s worth a call to brush up on this issue if you are planning an event where alcohol will be served – particularly one where attendees may be not known to you.
Talk with your insurance agent about your liability insurance coverage and any exclusions, conditions or limitations your policy might have for this kind of risk an exposure. Appropriate liability insurance coverage is necessary. In some cases “special event” coverage may be available that will cover both liquor liability and other liability exposures specific to the event.
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November 11th, 2007 at 4:53 pm
Every time I read about the marketing of a new sort of insurance out there, in this case the social host variety, I initially think \”Come ON, this is getting out of hand.\” Then I read a bit further, and it makes all the sense in the world. Obviously, it would be nice if people could just be responsible drivers-slash-imbibers — but because there will always be an element of society which ignores such common sense, coverage becomes a necessity.
Jerry
http://www.leads4insurance.com