Company holiday parties give your employees the chance to relax, network and have fun. 
You could be liable for your employees' drinking, though. Learn more about your liability and ways to protect yourself as you prepare for your holiday party.
Check Your Company Insurance Policy
The majority of states have liquor liability laws that apply to anyone who serves alcohol. If one of your employees drinks too much and gropes another employee or causes a car accident after the party, you could be sued, so check your company’s general liability policy and employment practices liability insurance policy with third‑party coverage to ensure you have adequate liability coverage.
For examples of liquor-liability coverage for specific businesses, see Bowling Alleys Liquor Liability and Night Clubs Liquor Liability Insurance.
Ask Employees to Review the Employee Manual
The company's employee manual should include details about employee behavior at company events, including their responsibility to behave properly and any penalties for over-imbibing. As employees RSVP to the party, ask them to review the policy.
Serve Food
Unique appetizers, hearty entrees or a dessert bar can distract employees from drinking, and eating before drinking reduces alcohol’s effects.
Focus on Fun and Games
Instead of prioritizing drinking, plan fun activities like hiring an entertainer, hosting karaoke or a dance-off, or running team-building games. When the main focus of the party is the activities, employees are less likely to drink all night.
Be an Example
If you plan to drink at the party, limit yourself to one beer, cocktail or glass of wine and ask other managers or the planning committee to model moderation.
Provide a Cash Bar
Employees are more likely to drink too much if they don't have to pay; consider covering food, entertainment and non-alcoholic beverages while requiring payment for alcoholic drinks.
Offer Non-Alcoholic Options
Include several interesting non-alcoholic beverage options on your menu so employees have fun alternatives that encourage sobriety.
Hire Trained Bartenders
Trained bartenders can recognize when a person has reached their limit and will card anyone who looks underage, which reduces alcohol-related liability.
Use a Drink Ticket System
Limit access to alcohol by giving employees a set number of drink tickets; when they reach their limit, they can’t order any more drinks.
Close the Bar
An unlimited open bar invites overindulgence; open the bar for a limited time and then close it to help prevent excessive drinking.
Pay Cab Fare
Ensure employees arrive home safely by paying cab fare or arranging rides for employees who need them.
Before your holiday party, review with an insurance agent to ensure you’re covered as you prepare to have fun.
Frequently Asked Questions
Can my business be held responsible if an employee drives drunk after a company event?
Yes; depending on your state laws and circumstances, employers can face liability for incidents caused by intoxicated employees after company-sponsored events.
Does a general liability policy usually cover alcohol-related incidents?
Some general liability policies include limited coverage, but you should check for specific liquor liability or third-party coverage and any exclusions.
What are practical steps to reduce alcohol-related risks at workplace events?
Provide food and non-alcoholic drinks, hire trained bartenders, limit access to alcohol, close the bar early, and arrange safe rides home.
Should event policies be included in the employee manual?
Yes; having clear, written expectations for conduct at company events and consequences for violations helps manage behavior and liability.