Party Hosts Could Be Subject To Dram Shop Liability Laws

Individuals and businesses hosting holiday parties should beware of “Dram Shop Liability” laws in their state, as those individuals and businesses could be held liable for alcohol-related incidents involving their guests, according to the Insurance Information Institute (I.I.I).

Several states have passed Dram Shop Liability laws, which make it possible to hold anyone who serves alcohol to an intoxicated or underage person responsible for damage or injury caused by these same individuals, the I.I.I. said. Those who serve the alcohol may be sued, and could also be subject to criminal charges, I.I.I. explained.

Originally intended to apply to bars and other establishments selling and serving alcohol, I.I.I. said “social hosts” also have some exposure to the risk of liability for serving alcohol.

Loretta Worters, I.I.I. vice president said in a statement, “In some states you can be held legally responsible for your guests’ actions after they leave your party. If you are throwing a party where alcohol is served, you have a responsibility to make sure that your guests are capable of driving safely. You don't want to allow anyone who has been drinking to drive home and possibly kill or injure themselves or others on the road.”