A company holiday party is often the most anticipated event of the year as it gives everyone a chance to celebrate the year. Who doesn’t want to relax, celebrate the year’s success, and socialize with colleagues? Of course, for all the fun a holiday party can provide, there are also many liabilities that business owners must be aware of. You need to avoid common company party mistakes to prevent these liabilities from coming to fruition.
How to Avoid Issues at the Company Holiday Party
If you’re wondering how to avoid damage at a company holiday party, you can start by investing in a comprehensive business insurance policy. This, along with an umbrella insurance policy and the following tips, can ensure that you don’t fall prey to party liabilities.
Property Damage That Business Insurance Doesn’t Cover
Did you know that business insurance doesn’t always cover property damage? Different business insurance policies cover different liabilities, and if you have a holiday party coming up, you need to ensure that your policy includes coverage for any damages that could occur. Likewise, if your existing coverage is insufficient, supplementing it with umbrella insurance could provide the solution you need.
It is essential for a holiday party because people may be drinking alcohol on your business’s premises. If party attendees become inebriated after drinking, it’s far more likely that they will cause property damage. If you don’t account for this risk, you could find yourself covering the damage out-of-pocket.
Inappropriate Interactions That Cause Major Liabilities
Property damage isn’t the only liability that often emerges at a company holiday party. Unfortunately, alcohol may also eliminate the inhibitions of some attendees and cause them to engage in inappropriate behavior. It may be an off-color joke that partygoers soon forget or an unwanted advance that escalates to sexual harassment.
In either case, the incident can result in severe liability for your company, so you must remind all party attendees that the company’s code of conduct is still in effect. This simple reminder can minimize many misguided interactions.
Insufficient Business Insurance Coverage
Holiday parties are always fun, but they’re also a serious risk for companies that don’t have sufficient business insurance to cover liabilities. In this scenario, property damage, sexual harassment, and a range of other liabilities can quickly halt the fun and incur costly damages for your company. An evening of holiday celebration should never cause liabilities like this to emerge.
Any company that plans to host a holiday party should thus remind attendees to behave appropriately — and, in the event that they ignore these reminders, companies must also invest in adequate business insurance to prevent such risks from ruining the fun of the festivities.
About Provident Protection Plus
For more than 65 years, Provident Protection Plus has served the businesses and residents across several states nationwide. Today, we are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution. To learn more about our coverage options, contact our specialists today at (888) 990-0526.