Work parties boost morale and employee engagement. Your staff appreciates the time to relax, chat with others and maybe win some fun prizes. However, even the best intentions pose some level of risk. Workplace gatherings could bring out your staff’s worst behaviors—especially if you plan to throw alcohol into the mix.
From small pizza parties of appreciation to the big end-of-year party, do you have the right workplace policies—or even insurance—to cover what happens if that workplace event results in a claim for which you may be liable?
As a professional and small business owner, you balance delivering services your customers count on with managing the logistics of your own business. ERIE is here to help you with that balance, responding to your needs with coverage for unique risks you face - including employment practices liability, liquor liability and more.
To help you look ahead, navigate the complexities of risk and prepare for whatever comes next, we’ve compiled a list of tips for throwing a fun (and risk-averse) celebration.
Setting Guidelines for Workplace Parties
You likely already have various training and documentation regarding workplace “rules” like a code of conduct as well as policies and procedures around social media, computer usage, building safety and harassment in the workplace.
Even behavior that was intended to be innocent could create liability. Mixing in alcoholic beverages may increase the risk of someone doing or saying something inappropriate leading to an employment practices claim like harassment. (See how employment practices liability coverage can help.)
Prior to the festivities, remind your employees that the party is still a work function—meaning the policies in place, and the consequences of any misconduct, remain. You might even benefit by developing a “work function” policy that details any specific policies you want enforced. Plus, having everything in one place makes it easy to locate and share with your employees when the time comes.
Risks to Consider While Planning
Party planners know to expect the best but to prepare for the worst. While the goal of a work party is to engage with your coworkers and have fun, there are a few things to keep an eye out for when you’re determining key items like food and location for your event.
Attendance. Consider making the party optional. You might have employees who don't like to socialize at functions like this or have a social battery that needs to be recharged. For your employees with kids or other responsibilities outside of work hours, maybe move the party during lunchtime or in the last few hours of the workday. Adjusting to a daytime event means there’s a larger chance everyone is free, and they might appreciate the extra break during the workday.
Discrimination. Invite all your employees and consider making the event nondenominational instead of celebrating a particular religious-based holiday. Or put the focus on your employees’ successes and accomplishments.
Bad food. While you could have a potluck, catering your event with a professional can decrease the chance for foodborne illness. Just be sure to get everyone’s allergies prior to placing your order.
Alcohol. Drink tickets are often the easiest way to limit alcohol at a party. But consider offering nonalcoholic drinks as well—like soda, water or other fun, sparkling beverages.
While every state has different laws, many hold the hosts of a party legally responsible (even criminally in some cases) for the actions of intoxicated guests. An ErieSecure Business policy includes Host Liquor Liability (provided you are not in the business of producing, distributing, selling, serving or furnishing alcohol) that can respond to claims associated with this.
Location. While it’s more convenient to host a party at your place of business, you might find that a larger space has more to offer. If you do plan to host, make sure you have the right liability coverage. Consider chatting with your agent beforehand to make sure you’re covered.
We can’t plan for everything, but there are professionals who assess risks for a living. Qualifying customers who have business insurance with ERIE have access to customized risk control services, like a risk control consultant who can help evaluate the potential risk your business faces.
Learn more: How an ERIE Risk Control Consultant Can Help You
Managing Business Risk with ERIE
Planning is smart, but when you own a business, life is rarely predictable. With Erie Insurance, you get top-notch coverage and claims service, plus risk and safety resources—because the only thing better than a fast, reliable claims process is avoiding losses altogether. Talk to a local ERIE agent today to find out how you can stay safe from the unexpected.
ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York). The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.
The insurance products and rates, if applicable, described in this blog are in effect as of October 2024 and may be changed at any time.
Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions.
The insurance products and services described in this blog are not offered in all states. ERIE life insurance and annuity products are not available in New York. ERIE Medicare supplement products are not available in the District of Columbia or New York. ERIE long term care products are not available in the District of Columbia and New York.
Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.
Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.
