What to Know About Hosting an Employee Holiday Party 

Holiday parties are a cherished tradition for many Maryland businesses, offering employees a chance to celebrate, bond, and recharge before the new year. But while these events can boost morale, they also carry risks that business owners and HR professionals must carefully manage. Without proper planning, an employee holiday party can expose your company to liability, safety concerns, and reputational damage.

Alcohol Consumption: Set Clear Boundaries

When alcohol is involved, it’s essential to establish clear rules to reduce the risk of liability. Consider these measures:

• Limit or monitor alcohol service. Consider offering drink tickets or restricting open bars to reduce overconsumption.
• Hire licensed bartenders. They are trained to recognize signs of overconsumption and can help prevent unsafe situations.
• Provide alternatives. Offer plenty of non-alcoholic beverages and encourage moderation.
• Arrange safe transportation. Partner with rideshare services or provide taxi vouchers to help prevent impaired driving.

Protect Against Harassment and Misconduct

Holiday parties should remain professional and inclusive. To safeguard your employees and help prevent liability exposure, keep these practices in mind:

• Reinforce workplace policies. Remind employees that the company codes of conduct apply at the party.
• Discourage inappropriate behavior. Alcohol and festive settings can blur boundaries, so make expectations clear in advance.
• Designate HR presence. Having HR or management staff on-site can help ensure that potential issues are addressed quickly.

Venue and Safety Considerations

The location and activities you choose can significantly impact safety and liability. To minimize risks, follow these guidelines:

• Choose a safe location. Ensure the venue complies with fire codes, occupancy limits, and accessibility requirements.
• Check insurance coverage. Review your business insurance policy (e.g., general liability, employment practices liability and any special event coverage) to confirm event-related protection.
• Avoid risky activities. Skip games or contests that could lead to injuries or unsafe behavior.

Review Your Business Insurance Coverage

A holiday party should be a time of joy, not a source of liability.

If you’d like guidance on event risk management or want to review your business insurance coverage before hosting a holiday party, reach out to Lyceum Insurance Services today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.